South Korea’s Asiana Airlines Inc. shares weighed down by in-flight meal crisis and owner family risk got a lift by rumors about SK Group interested in taking over the country’s second full-service carrier.

The hype died down after SK, the country’s fourth largest conglomerate, shot down the possibility.

Shares of Asiana went on a roller-coaster ride throughout Tuesday, gaining at one point 23 percent and becoming the third largest stock to exchange hands. They came down to close Tuesday 3 percent higher at 4,300 won ($3.81) after SK Holdings, the holding entity of the conglomerate, issued a disclosure statement denying the rumor.

Its shares closed Wednesday 1.28 percent lower at 4,245 won.

Local investors went on frenzied bargain hunting, fetching a net 12.8 billion won worth in the stock on Tuesday that had been on a downward spiral ever since the scuffle with an in-flight meal supplier that led to flight delays and a no-meal crisis on both short and long-haul flights in the first week of this month. The fiasco threw spotlight on the company’s bigger liquidity woes, illicit board member hiring, and employee complaints about the chairman and owner family.

The buying spree of local investors in Asiana has continued for five straight days since July 11, peaking on Tuesday to 2.6 times their latest four-day injection of 4.9 billion won. Meanwhile, foreigners have been mostly dumping the shares this month to net sell a total of 17.6 billion won in the stock.

The airline has been under buyout rumors in recent years due to mounting debt amid increased competition from low-cost rivals. It underwent a creditor-led debt restructuring program from 2010 to 2014 and another rigorous round of rationalization in 2016. It has about 2.02 trillion won of debt maturing this year, including corporate bonds of 384.7 billion won, asset-backed securities of 555.3 billion, financial lease debt of 284 billion, and other short-term debt of 794.3 billion won.

The company has so far secured only 700 billion won through asset sales. It recently sought to raise $300 million in overseas perpetuity-like hybrid bonds but dropped the plan due to lackluster demand.

Its hope for raising funds through rights issues in the second half has also been dashed as the company’s stock slipped below the face value of 5,000 won amid a series of negative news.

M&A observers began to float the idea of SK’s interest in the air transportation industry after it recruited Jeju Air CEO Choi Kyu-nam, who has been credited for the fast ascension of the budget carrier, to head the conglomerate’s global M&A and business operation. He claimed his role is to seek M&A opportunities abroad and not at home in an interview with JoongAng Ilbo.

Industry experts do not believe Park Sam-koo, chairman of Kumho-Asiana Group, would easily surrender the flagship company after his failed attempt to recover Kumho Tire.

Kumho Industrial owns 33.47 percent in Asiana, followed by Kumho Petrochemical at 11.98 percent. Park wields management power over Asiana through his stake in Kumho Buslines that acts as the holding entity over Kumho units.

Despite the poor balance sheet, the airliner was able to improve its bottom line over the last two years through restructuring efforts. Its operating profit in 2017 increased to 275.9 billion won from 256.5 billion won in 2016.

By Ko Min-suh and Kim Hyo-jin

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