Russia’s Aeroflot teamed up with Italian bank UniCredit to join the auction for Italy's national airline Alitalia today.

The Italian Government, which holds 49.9 per cent and has put the loss making airline up for sale, announced a shortlist of three bidders today.

The other contenders are the US private equity firm Texas Pacific Group - which today joined forces with the US investment firm Matlin Patterson and Italian bank Mediobanca - and Carlo Totto's vehicle AP Holding. Totto heads Alitalia's largest domestic rival, Air One.

TPG on Friday approached Spain's national carrier, Iberia, with a takeover offer. It is thought to be bidding for both airlines in the hope of winning at least one.

Lev Koshlyakov, Aerflot's deputy chief executive, said: “Aeroflot is really showing interest in this project. Talks on the issue have taken place. We’ve made an offer.”

Aeroflot will control 95 per cent of the consortium with UniCredit owning the remaining 5 per cent.

Sergio Ermottoi, Unicredit’s head of investment banking, said that the consortium could be open to another European carrier if rules governing the bidding process were to change. The current rules gave this morning as a deadline for changing participants in bids.

Alitalia shares were suspended this morning pending the Treasury’s statement and reopened later up more than 8 per cent at €1.03, giving it a market value of about €1.3 billion (£663 million).

Non-binding offers are expected by the Treasury by mid-April.

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