Stobart Group Ltd (LON:STOB), the owner of Southend airport, has confirmed that it has been running the rule over Flybe Group PLC (LON:FLYB).
Shares in the regional airline shot up 25% to 43p as Stobart responded to press speculation by saying it has, as previously announced, been reviewing alternative structures for the Stobart airline and leasing business, and one of the options on the table is to take a non-controlling interest in a vehicle that would acquire Flybe, most likely for cash.
Stobart Group and Flybe have a range of shared interests arising from Stobart Group's ownership of Southend airport and the growing franchise arrangements between the two groups' airlines.
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Stobart issued the usual caveat that there is no guarantee any transaction will take place.
Stobart shares were 5p higher at 255p in afternoon trading.