Shares in easyJet PLC (LSE:EZJ) flew to the top of the FTSE 100 leaderboard on Tuesday on an Italian report that suggested Mediterranean Shipping Co (MSC) is interested in a bid.
Italy's Corriere della Sera reported that the shipping giant is mulling an investment or full control of the UK budget airline.
The "easyJet dossier is landing on the desks of several parties studying the possibility of investing in one of Europe's leading airlines", the Italian newspaper reported, per a Google translation.
The options range between buying a majority stake or full control, the rerpot said, with Geneva-headquartered logistics giant MSC, working in tandem with an investment fund, one of those interested.
Three sources familiar with the matter were cited, though the moves are at a preliminary stage and it was not a given that the low-cost carrier's board will accept offers, the report said.
MSC also has looked at US low-cost airline Spirit Airlines Inc and Portuguese flag carrier TAP, the newspaper noted, while a trend has been notable for logistics and shipping firms to invest in airlines in recent years, such as Kuehne & Nagel in Lufthansa and CMA CGM in Air France KLM.
EasyJet shares jumped over 6% in early trading, then eased after a spokesperson for the purported suitor said "MSC denies any involvement in this matter".
Then by mid-afternoon the shares were over 7% higher at 497.8p.
EasyJet is "no stranger" to takeover rumours, observed market analyst Dan Coatsworth at AJ Bell, and it was less of a surprise with the shares trading at a cheap valuation.
While MSC played things down, Coatsworth said "markets rarely move on and focus on something else when there is bid talk".
The report is likely to get investors thinking about who might want to own easyJet, he said, explaining why the shares are still trading higher despite MSC denying any involvement.
He says there is "some logic" to MSC owning easyJet, even if it looks like an odd match at first glance, as its involvement in air cargo gives it a foot in the aviation industry.
MSC also has a cruise business and "might take the view that easyJet is a cheap way to expand into other parts of the consumer leisure market".
He feels a rival airline bidding for easyJet is more realistic, potentially an American player looking to expand geographically or BA owner International Consolidated Airlines Group SA (LSE:IAG).
** UPDATE: Adds detail and analyst comment **