Interesting news from across the pond today as Scandinavian carrier SAS said in a statement that the airline is conducting “talks about a possible structural solution.” That’s an interesting way to put it.
News reports say that Lufthansa is apparently about ready to make a takeover offer for the airline.
Shares of SAS were up 18% on the news, ending the day with a 16% increase, up to 55.25 kronor or $8.09.
According to Reuters, Lufthansa is mulling a bid for the airline after SAS approached Lufthansa. This news comes as Lufthansa is already in talks to buy Brussels Airlines. A bid by Lufthansa for Austrian Airlines also appears to be in the wings as well.
Bloomberg quoted Exane BNP Paribas analyst Geoff van Klaveren today, as he outlined the current position of SAS. “SAS is not in a financially strong position. SAS can’t be a standalone airline, so something will happen, whether it’ll be a complete takeover or a joint venture on something like long-haul flights.”
Meanwhile, Glitnir analyst Mats Hyttinge told the Associated Press that investors had speculated for a long time about SAS being a possible takeover target for Lufthansa, which has been looking at possible acquisitions for some time.