LONDON (Thomson Financial) - Business airline Silverjet Plc. said it is in talks about a potential takeover of the company.
The carrier, which flies from Luton to New York Newark and Dubai, said in a statement that it had noted a recent increase in its share price.
'The company is currently in discussions which may or may not lead to an offer for the issued share capital of the company,' the group said. 'A further announcement will be made when appropriate.'
Speculation has emerged about Silverjet's future following negative analyst comment and results that disappointed investors.
One report suggested the business airline could become a takeover target for easyJet Plc. after it said in January that it had appointed Amir Eilon, a former board member of the budget carrier and friend of easyJet's largest shareholder Stelios Haji-Ioannou, as a non-executive director.
In January, stockbroker Daniel Stewart initiated coverage on the airline with a 'sell' rating and zero pence price target, saying it doubted the group's business model. Silverjet hit back, saying it was confident the carrier would achieve its first month of operating profit in March.
The group failed to achieve that target, but said earlier this month that it flew 23 percent more passengers in March than it did in February.
In February, Silverjet said property tycoons the Reuben brothers had decided against turning a 10 mln stg loan to the business airline into shares.
Silverjet launched services from the UK to the US in January last year. The group's share price has fallen since it floated in 2006 and concerns have grown about the feasibility of the all-business class, long-haul airline model since US premium only carrier Maxjet Airways filed for bankruptcy late last year.
However, some analysts believe there could be space for different types of premium-only carriers.
The group's shares closed at 15-1/4 pence on Wednesday. It floated on AIM in May 2006 with a placing price of 112 pence per share.
TFN.newsdesk(at)thomson.com