Stobart Looking At Possible Flybe Bid

UK infrastructure and support services company Stobart Group said it is considering a bid for regional airline Flybe, possibly as part of a consortium.

Stobart said in a statement that it noted the speculation about a potential takeover of Flybe and pointed to shared interests, including franchise agreements and Stobart-owned London Southend Airport where Flybe is a major airline customer.

“A number of potential structures have been considered including taking a non-controlling interest in a vehicle to acquire 100 percent of Flybe likely to be in cash,” Stobart said in the statement.

“It is not possible to say, at this stage, whether a transaction will take place, whether a firm proposal will be made or, if it is, the form a transaction to combine the airlines might take.”

Flybe said it had not received an approach from Stobart and “strongly advised shareholders to take no action at this stage.”

Under stock exchange rules Stobart has until March 22 to either make an offer for Flybe or announce that it does not intend to make an offer.