BUZZ-European Airlines rise on Norwegian Air takeover talks

(Adds Bernstein comments)

** Shares (Berlin: DI6.BE - news) in low-fare airline Norwegian Air jump 44 pct after IAG considers takeover offer for co

** IAG says it acquired a 4.6 percent stake in Norwegian and that it planned to start talks with the airline which included the possibility of making a full offer

** Norwegian says it's positive IAG finds the company attractive, but declines to comment further

** Nordic peers Finnair (LSE: 0EG8.L - news) and SAS (LSE: 0O1W.L - news) up 3.9 pct and 9.8 pct respectively after the M&A chatter

** British based low-fare airline EasyJet (Frankfurt: A1JTC1 - news) also up 3 pct, low-cost air-line Wizz Air (Frankfurt: WI2.F - news) up 3.2 pct, German airline Lufthansa (Xetra: LHAB.DE - news) up 2.3 pct and Irish airline Ryanair up 2.4 pct

** Bernstein sees the acquisition as giving IAG good strategic optionality around its relationship with Norwegian, and believes there are other forms of partnership between the two Co's that may be more affordable and achievable than full bid

** It may be difficult for IAG to complete a full-scale acquisition through the capital markets process without paying a substantial premium for Norwegian's equity, Bernstein notes

** "A partnership that looks to maximize the synergies of the two networks, minimise duplications of capacity and investments on key routes...could all provide some of the benefits of the consolidation without the likely high cost of a deal", broker says in note

** More than 5.2 mln shares in Norwegian traded, 10x times their 30-day moving avg

** Shares in Norwegian was briefly halted by Oslo Stock Exchange