Apollo seeks to take majority stake in SAS's Chapter 11 rescue plan

US asset manager Apollo Global Management plans to apply for approval from Swedish and Danish regulators to take a majority stake in SAS as part of the Scandinavian airline's rescue plan, a source familiar with the matter said. 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 US private equity giant, which has also invested in US 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 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. No final decision has yet been made on a possible investment, according to two sources familiar with the matter. The first source said a deal could be done before the year-end. Apollo and SAS declined to comment. Apollo will mainly work with aviation regulators in Sweden and Denmark to secure approval, the first source said. The European Commission would also be involved, but the national regulators would be responsible for giving the go-ahead for a change of ownership. The move comes as the airline looks for large investors and seeks to raise equity as part of its Chapter 11 bankruptcy plan.<br/>