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Virgin Group rejected a $1.54 billion bid for its Australian Virgin Blue discount carrier.

Patrick Corp. who launched the bid owns a 45.95% stake in the carrier, but Virgin Group sees the offer as too low. Cricket SA has bought 5.1 million more Virgin Blue shares from the market.

According to the New Zealand Herald,

"Patrick Corp has disputed that it may have to raise its bid for Virgin Blue Holdings to comply with local law and is seeking a ruling from the country's regulators.

The discount airline said yesterday that Patrick might have to raise its January 28 offer to A$2.06 ($2.24) a share from A$1.90 to match prices paid for shares in Australia's second-largest carrier by Virgin Group."

"After discussions with Virgin Blue, Patrick has referred the matter to ASIC and sought appropriate relief," the company said.

"Virgin Blue yesterday cited legal advice that Cricket's acquisition could trigger a section of the Act requiring takeover offers be made at a price equaling or exceeding the maximum paid by the bidder or an associate in the previous four months. "

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