June 5 (Bloomberg) -- Air One SpA is ready to renew efforts to buy larger state-controlled rival Alitalia SpA, Il Sole 24 Ore reported, without saying where it got the information.

Air France-KLM dropped a takeover bid for Alitalia on April 21, three weeks after talks with labor unions broke down. Italy's previous government had picked Air France over Air One to enter into exclusive merger talks.

The current administration led by Prime Minister Silvio Berlusconi opposed the bid from the French carrier and has said it would prefer an all-Italian option.

To contact the reporter on this story: Flavia Krause-Jackson in Rome at fjackson@bloomberg.net

Last Updated: June 5, 2008 01:57 EDT