Nov. 20 (Bloomberg) -- AirAsia Bhd., Southeast Asia's largest low-cost carrier, rose the most among Kuala Lumpur benchmark index companies after the Star said shareholders may announce a buyout offer next week.
The carrier rose 2.7 percent to 1.16 ringgit at 11:48 a.m., after earlier gaining as much as 4.4 percent. The Kuala Lumpur Composite Index fell 1.8 percent.
Tune Air Sdn., controlled by AirAsia Chief Executive Officer Tony Fernandes, may make a buyout offer of between 1.30 ringgit and 1.35 ringgit a share, the Star said today, citing unidentified people. The company had previously said it may make a 1.35 ringgit bid, if it could secure the financing.
``There is very significant likelihood of a general offer,'' Paul Dewberry, a Merrill Lynch & Co. analyst, wrote in a report today. The announcement may come alongside the company's third-quarter results next week, he added.
Dewberry upgraded the carrier to ``buy'' from ``underperform'' on the buyout plan. He set a target price of 1.35 ringgit.
CIMB Bhd. may lead the group of banks financing the buyout, the Star said.
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