Virgin America considering sale amid buyout interest - BloombergWednesday 23 March 2016 20.15
The Richard Branson-backed Virgin America is considering selling itself or a part of the company after it received buyout interest, according to Bloomberg.
The budget airline is reaching out to potential buyers, Bloomberg said, citing people with knowledge of the matter.
Virgin America declined to comment, saying it does not comment on any speculation concerning mergers or acquisitions.
The airline company's shares were up 13.6% at $34.83 in midday trading. They rose as much as 15% earlier in the session.
Virgin America is working with a financial adviser, Bloomberg reported, adding that no decision had been made and the company may choose not to pursue a sale.
The Burlingame, California-based airline company publicly listed its stock in November 2014.
Its shares were priced at $23 each and the company was valued at $1.24bn.
Virgin America now has a market cap of $1.37bn, according to Thomson Reuters data.
Virgin America is the US offshoot of billionaire entrepreneur Richard Branson's London-based Virgin Group, which is involved in airlines, railroads, telecommunications, media, and hospitality.