Greybull hires bank to look at options for Monarch Airlines

Aircraft of British carrier Monarch is parked on the apron at Larnaca airport, Cyprus November 7, 2015. REUTERS/Yiannis Kourtoglou

LONDON (Reuters) - Investment firm Greybull Capital said it had appointed bankers to examine options for Monarch Airlines, but a sale of the European holiday carrier was not on the cards.

Greybull, which made headlines in Britain earlier this week when it agreed to buy a steel plant from Tata Steel, bought Monarch 18 months ago and has led a turnaround of the airline.

“In order to review relevant options thoroughly, Monarch has sought the assistance of Deutsche Bank who will look at both inbound and outbound opportunities,” a spokesman for Greybull said.

“We confirm there is no sale process.”

Sky News reported on Thursday that Chinese conglomerate HNA Group [HNAIRC.UL] had opened talks about taking a minority stake in the airline.

HNA, which is one of China’s top-four aviation companies, with a fleet of more than 820 aircraft, could not immediately be reached for comment.

Reporting by Sarah Young. Editing by Jane Merriman