LONDON (AP) — Shares in British Airways PLC rose yesterday on speculation of a possible takeover approach after investment bank Goldman Sachs raised its stake in the carrier.BA revealed on Friday that Goldman Sachs had lifted its shareholding to 5.14 percent, from below 3 percent previously. Traders said the move had prompted speculation that an arm of the US investment bank might be engineering a takeover move on BA.

Goldman Sachs did not immediately return calls seeking comment yesterday.

BA shares rose 3.8 percent to 478.5 pence ($9.48).

Analysts added that the shares were also bouncing back from a recent bout of weakness and last week's purchase of 10,000 shares by chief executive Willie Walsh had added to the positive sentiment.

British Airways, which has a 10 percent stake in Spanish airline Iberia, is backing a $4.6 billion preliminary offer for the Spanish carrier from a group led by private equity firm TPG Inc. Goldman is advising Iberia on takeover approaches.