Severe turbulence continues for SAS shares
SAS shares shot up 20 percent today after taking a 29.1 percent nosedive last week to 0.16 kroner, DR reports.
The plummet follows rumours the airline could be delisted, as the CPH Post wrote last week.
After going into an apparent death spiral, however, the shares today recovered after SAS announced that it does not intend to utilise the second instalment of a loan of 4.7 billion kroner from Apollo Global Management because it has “no need for further liquid assets” for the moment.
The US capital fund was expected to take control and keep the Danish state onboard as a minority stakeholder.
Stormy skies ahead
While SAS seems to be regaining altitude with today’s good news, its problems are far from over.
Its finances so far this year have not impressed, and the memory of last summer’s pilot strike still lingers.
Many analysts believe that the takeover is inevitable given the poor performance and continuing issues.
The question could be how long, they concur, rather than whether SAS will be able to ride this storm.