Italy picks US fund Flacks for talks on sale of former Ilva steelworks, sources say

ROME, Dec 30 (Reuters) - Italy has picked U.S. investment fund Flacks for exclusive talks on the sale of bailed-out steel company Acciaierie d'Italia (ADI), formerly known as Ilva, sources close to the dossier said on Tuesday.

Flacks prevailed over Bedrock Industries, another U.S. fund and the only other investor that had bid for the assets of the steel company, currently run by government-appointed administrators, the sources said.

Flacks did not immediately respond to a request for comment. Founder Michael Flacks said in an interview with Bloomberg this month that he had offered 1 euro ($1.18) for the steelworks, while pledging to save the jobs of the thousands of people employed there.

The U.S. fund describes itself as a turnaround expert for medium to large-sized businesses in financial distress.

Based in Taranto, Ilva was once Europe's largest steel plant, but has been hobbled since 2012 by judicial investigations and asset seizures related to the environmental impact of its activities. Italy's government has repeatedly bailed it out, citing its strategic importance.

Italy had already tried to sell ADI's steelworks to an Azeri consortium comprising Baku Steel and Azerbaijan Business Development Fund but failed to reach a comprehensive agreement.

($1 = 0.8498 euros)