U.S. asset manager Apollo Global Management Inc. plans to apply for approval from Swedish and Danish regulators to take a majority stake in SAS AB as part of the Scandinavian airline's rescue plan, Reuters reported. The news of interest from the U.S. asset manager sent the embattled carrier's shares up as much as 14% in Wednesday morning trading. At 1011 GMT, they were up 5.9%. SAS has lost almost 60% of its value since it filed for chapter 11 bankruptcy protection last July, seeking to slash costs and debt after wage talks with pilots collapsed. A deal with the U.S. private-equity giant, which has also invested in U.S. and Mexican airlines, would be a test of European Union rules, which prevent more than 50% of an airline being held outside the bloc of 27 members. Given that a large part of Apollo's capital originates from Europe-based investors, the fund is hoping to get approval for a deal, according to the source, who declined to be identified because the matter is confidential.
