BBA Aviation's share price was down in mid-morning trading on the back of news that it could buy out private equity-owned Landmark Aviation for more than $2bn (£1.3bn).
The British aircraft services provider confirmed this morning that it was making a $2.065bn offer for the Carlyle Group-owned business, which will be partly funded through a £748m rights issue.
It was a "transformational and strategically compelling transaction for BBA Aviation," the company said, which would enable a "major expansion" of its Signature network.
There would be "substantial cost synergies and tax benefits," the company added, with enhanced earnings per share forecast as early as 2017 and return on capital expected to exceed the costs by 2018.
Chief executive Simon Pryce said: "This is a transformational step in the continued execution of BBA Aviation's strategy that is both strategically and financially compelling. It represents a unique opportunity to materially expand our global Signature FBO business and deepen our exposure to the attractive B&GA market with its structural growth drivers.