Atlanta-based Delta Airlines, the third-largest US airline, and Air France have held discussions with at least eight Indian companies. It was understood that the nation's largest cigarette-maker, ITC was one of those companies. ITC is viewed as a strong candidate, since its chief executive, Yogi Deveshwar, is a former head of Air India. The Indian government is selling a 40 percent stake in the national flag carrier Air India - 26 percent to a strategic foreign partner, and the other 14 percent to an Indian company.

The technical bids, in which potential buyers disclose their business plans, are a prelude to the bidders gaining access to the financial records of the money-losing Indian airline. The government hopes to complete the sell-off by the end of March. Among the other groups selected to submit bids are Singapore Airlines in partnership with India's Tata Group, Dubai's Emirates airline, and British-based business barons LN Mittal and the Hinduja brothers.

(Reuters)