Airlines Stock Take Flight on More Industry Consolidation News

Speculation in the airline sector is rampant today following news that UAL Corp (Nasdaq: UAUA), the parent of United Airlines, and Continental (NYSE: CAL) have held exploratory merger talks over the past several months, but talks have picked up recently following US Airways Group's (NYSE: LCC) recent hostile bid for Delta Air Lines Inc. (OTC: DALRQ). Link

In addition, AirTran Holdings Inc. (NYSE: AAI) confirmed it made an $11.25 per share offer for Midwest Air Group (NYSE: MEH), which was rejected. Link

Other stocks in the sector are also higher as industry consolodation takes shape: AMR Corporation (NYSE: AMR), Frontier Airlines Holdings, Inc. (Nasdaq: FRNT), JetBlue Airways Corp. (Nasdaq: JBLU), Northwest Airlines (OTC: NWACQ), Hawaiian Holdings Inc. (NYSE: HA), Alaska Air Group Inc. (NYSE: ALK)

Technip (TKP) Higher on Takeover Reports

Shares of French oilfield service company Technip (NYSE: TKP) are higher in this morning on reports from French newspaper La Tribune that Italian oil giant Eni SpA may make a bid for the company. According to the reports, Eni may merge Technip with its Saipem SpA unit.

Another French paper Les Echos reported that Saipem could offer more than 6 billion euro for Technip. A merger between Technip and Saipem would create the world's third largest oilfield-services company, behind Halliburton Co. (NYSE: HAL) and Schlumberger Ltd. (NYSE: SLB).

Technip said it has not received a takeover approach. Shares of Technip are up 7.3% in early action.