London Southend owner Stobart Group is considering a takeover bid for struggling airline Flybe.
Following speculation, Stobart was forced to issue a statement to the London Stock Exchange yesterday confirming that it was considering a number of options to grow its aviation business.
One of those is to take a non-controlling interest in a vehicle to acquire 100% of Flybe.
But the statement added: "It is not possible to say at this stage whether any 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."
Flybe promptly issued a notice to investors saying it had not received any approach from Stobart Group and would strongly advise investors to take no action at this stage.
The news pushed Flybe’s share price up by 36%.
Exeter-based Flybe has suffered a fall in profits and the burden of rising costs, dragging its share price down.
