The Virgin group, operator of airline Virgin Blue has rejected a takeover bid by Patrick Corp saying the $1.90/share offer was too low. Virgin's subsidiary Cricket SA instead purchased a further 5.1 million shares for an average of $2.04/share.
The Virgin Group is now a 25.1 percent shareholder in the Virgin Blue airline, and says they are fully committed to the growth and expansion of the budget airline.
The takeover bid came as a surprise to the Virgin Group, market analysts believe that Patrick Corp only seek to gain more influence over the airlines business, not 100% ownership of the airline.
