Avolon Considers USD$2.5 Billion Takeover Offer

Irish aircraft leasing firm Avolon is considering an unsolicited takeover bid of USD$31 per share from China's Bohai Leasing, which would value the firm at over USD$2.5 billion.

Avolon, whose shares were priced at USD$20 per share in an initial public offering in December, said the bid was in response to an offer from an independent third party to acquire the firm for USD$30 per share.

Bohai, which earlier this month agreed to buy 20 percent of US-listed Avolon for USD$429 million, was informed of the unsolicited offer and made its own USD$31 per share offer in response, Avolon said.

"Avolon's Board of Directors has not accepted or rejected either offer and continues to carefully evaluate these... and has authorised its financial advisors to continue negotiations with both," Avolon said in a statement.

Chinese lessors, mostly backed by state-owned banks, have been expanding in recent years as large carriers such as Hainan Airlines, Air China, China Eastern Airlines and China Southern Airlines launch more routes at home and overseas.