SAS SHARES RISE ON NEWS OF A BIDDING WAR

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By TESTCustomwebLP TESTCustomwebLP January 4, 2011 14:45

SAS SHARES RISE ON NEWS OF A BIDDING WAR

Shares in SAS rose to the highest price in eight weeks after a Danish newspaper reported that Air France-KLM Group, Deutsche Lufthansa and British Airways would be ready to enter a bidding war over the carrier.

SAS jumped 2.50 kronor, or 11%, to 25 kronor at the close of trading in Stockholm. Borsen reported on Dec. 31, without citing anyone, that all major airlines would be interested if a sale process starts.

SAS, which is 50% owned by the governments of Sweden, Denmark and Norway, is struggling with low-cost competition after losing money in all but one of the past 12 quarters. Lufthansa may announce takeover plans for SAS as early as the first half of 2011 but the German flag carrier has put off ties with SAS for so long now that they might have missed their chance.

During this first quarter acting chief executive officer John Dueholm will hand to Rickard Gustafson. Gustafson was named to the CEO position in September, taking over from Mats Jansson, who unexpectedly quit with one year left on his contract.

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By TESTCustomwebLP TESTCustomwebLP January 4, 2011 14:45
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