Australian transport group Patrick Corp said on Tuesday it has extended its proposed AUD$1.1 billion (USD$866 million) takeover offer for discount airline Virgin Blue another week.

Patrick said a wholly owned subsidiary, Plzen, "has today extended the offer period in relation to its bid for the shares in Virgin Blue Holding to 7 p.m. Sydney time (0800 GMT) on 22 March, 2005".

Patrick made its offer in January, nine days after Virgin Blue warned its annual profit would fall by up to 15 percent due to sluggish demand and a price war with Jetstar, the no-frills offshoot of Qantas Airways.

On February 28, the independent directors of Virgin Blue said shareholders should reject the offer, citing an independent expert's report it commissioned that valued Virgin Blue shares at between AUD$2.43 and AUD$2.90 -- at least 28 percent above the AUD$1.90 a share Patrick offered for the 54.6 percent of Virgin Blue it does not already own.

Patrick said analysts subsequently valued Virgin at AUD$1.51 to AUD$2.20 a share, averaging AUD$1.84 per share.