Air Berlin shares increase amidst talk of Ryanair interest
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Continental Europe,
Air Berlin
(AFX) Shares in SDAX-listed Air Berlin were sharply higher in afternoon trade as rumours circulated that discount airline Ryanair Holdings might be interested in buying a stake in the German LCC.
Several Frankfurt-based traders said they had heard rumours about Ryanair buying Deutsche Bank AG's estimated 10.7% stake in the German airline. One trader said he also heard that Ryanair was interested in buying the stake as a precursor to a full takeover.
At 1.12 pm, shares in Air Berlin were EUR0.82 or 5.09% higher at EUR16.92, while the SDAX was EUR15.11 or 0.23% higher at EUR6,640.94.
Other industry sources doubted whether Irish-based airline was interested in buying the 10.7% stake. "There is no truth is this rumour whatsoever," said a broker in Ireland. "I find it very hard to believe... it would be unlikely."
Both Air Berlin and Ryanair declined to comment on the rumours. Air Berlin said it was not aware of any takeover interest from Ryanair, while Ryanair spokesman stated, "Ryanair has a policy of not commenting on market rumours or speculation."
Ryanair's proposed EUR1.48 billion takeover of Aer Lingus was blocked by the European Commission last week. As such, industry sources suggested the LCC would look to invest elsewhere.
In May-07, Air Berlin CEO stated he was keeping an eye on the consolidating European airline market after recently obtaining shareholding in other German and Swiss airlines, including dba, LTU International and Belai, to expand its network with domestic and intercontinental routes.
The airline listed on the German stock exchange a year ago with an initial public offering priced at EUR12/share.
Date posted: 06-Jul-07
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Air Berlin shares increase amidst talk of Ryanair interest 
