Southwest, Not United, Could Buy Virgin America: World's Only Airline ETF Manager

Market chatter on Wednesday has shed some interesting light on a potential buyer for Virgin America Inc VA.

While initial speculation pointed to United Continental Holdings Inc UAL as an interested party, word has come across from the world's only airline ETF, U.S. Global Jets ETF JETS, CEO that Southwest Airlines Co LUV could buy Virgin.

Benzinga's newsdesk has been rapidly reporting the following tidbits regarding the situation:

• "JETS ETF CEO Says Cont. Buyback & Div. Increases, Coupled With Low Energy & Better Computing Systems Creates Pricing Power To Propel Industry."
• "JETS ETF CEO States A Deal Would Reset Industry, The Street Would Rotate Current Relative Levels To Reflect Value."
• "JETS ETF CEO Says A Buyout In The $40–$50 Range For Virgin Airlines Would Be ‘A Gamechanger' For The Industry."
• "JETS ETF CEO States The Natural Fit For Virgin Airlines Would Be Southwest Airlines In Terms Of Culture And Global Flight Opportunities."
• "JETS ETF CEO Says Although United Airlines & Virgin Have A Partnership, He Doesn't Think The Companies Would Be A Good Fit Culturally."
• "JETS ETF CEO Says Surge In Virgin Shows How Undervalued Industry Is, Trading At Half The P/E Ratio Of The S&P 500."

Related Link: Virigin America Stock Takes Off After Buyout Report

Jumps On The News

According to Seeking Alpha, "Virgin America VA was halted briefly a few minutes ago after a sharp gain, and have just resumed up 11.8 percent, following reports it's received takeover interest and has reached out to buyers."

Bloomberg reported that at this time, Virgin is in fact amid sales talks with suitors interested in part or all of the company. "The carrier, which flies to destinations throughout the U.S. and Mexico, is working with a financial adviser after receiving takeover interest, the people said, asking not to be identified as the matter is private. No decision has been made, and Virgin America may choose not to pursue a sale, they said."

Southwest is currently up 0.47 percent at $44.82.

United Continental is down 0.21 percent at $60.37.

Virgin America is up 13.17 percent at $34.71.