(Corrects typographical error in headline)
SINGAPORE, May 30 (Reuters) - Shares in Tiger Airways Ltd surged as much as 21 percent to a seven-month high on Friday on what traders said was speculation that its largest shareholder, Singapore Airlines Ltd, was planning to increase its stake in the loss-making carrier.
By 1620 local time (0820 GMT), Tiger’s shares were up 16.7 percent at S$0.525. Nearly 29 million shares were traded, 12.9 times the average traded over the past 30 days and the highest volume in two years. The stock was also among the ten most actively traded on the Singapore bourse.
The Singapore Exchange sent a trading query to Tiger, asking the company if it was aware of any information behind the unusual activity in its shares.
When contacted by Reuters, a spokesman from SIA, which owns 40 percent of Tiger, said the company does not comment on market speculation. A spokeswoman for Tiger said the airline was not able to comment on behalf of any of its shareholders.
SIA said earlier this month that it had no immediate plan to raise its stake in Tiger, and that it would focus instead on helping the airline in its turnaround plans.
This month, Tiger replaced its chief executive officer with an executive from SIA, in a sign that SIA will wield greater influence at the budget carrier.
Before Friday’s move, Tiger’s shares had slumped as much as 40 percent over the past year, battered by its large losses and dismal outlook. (Reporting by Anshuman Daga; Editing by Miral Fahmy and David Holmes)