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Flybe soars as Stobart confirms talks over possible deal
Flybe flew higher on Thursday after infrastructure and support services business Stobart confirmed that the two are in talks about "a number of potential structures", which could include a takeover.
In a response to press speculation about a potential takeover of Flybe, Stobart said the options include taking a non-controlling interest in a vehicle to buy the regional airline, most likely in cash.
"It is not possible to say, at this stage, whether a transaction will take place, whether a firm proposal will be made or, if it is, the form a transaction to combine the airlines might take," it said.
Stobart pointed out that the two companies have a range of shared interests arising from its ownership of London Southend Airport and its aircraft leasing company and the growing franchise arrangements between the two groups' airlines.
"As previously disclosed in October 2017, we have been reviewing alternative structures for our airline and leasing business that can play an important part in the consolidation of the regional airline sector," it added.
Earlier, Reuters cited a source familiar with the matter as saying that Stobart and Flybe were in talks about a potential deal.
At 1510 GMT, Flybe was up 24% to 42.93p and Stobart was down 0.2% to 147.20p.