Shares in Scandinavian airline SAS AB (SAS.SK) traded sharply higher Tuesday amid continued speculation over the possible sale of the carrier.

Earlier in the day, Norwegian business daily Dagens Naeringsliv reported that the country's Minister of Trade and Industry, Trond Giske, told reporters that the state is prepared to sell its 14.3% stake in SAS under certain conditions, adding, however, that there are no "concrete plans" at present.

A government spokesperson, Anne Cecilie Lund, confirmed these comments to Dow Jones Newswires.

At 1520 GMT, the airline's shares were up SEK2.30, or 9.2%, at SEK27.30 on the Stockholm stock exchange.

Speculation that the Swedish, Danish and Norwegian governments will put their combined 50% stake in SAS up for sale has been widely discussed amid expected consolidation of the European airline industry.

The airline's share price rose 11% Monday, following Danish media reports, citing sources close to the companies, of an upcoming "bidding war" for the company between European airlines Deutsche Lufthansa AG (LHA.XE), Air-France-KLM (AF.FR) and British Airways PLC (BAY.LN).

The Swedish government owns 21.4% of the shares in SAS, and the Danish and Norwegian governments each have 14.3%.

-By Jens Hansegard, Dow Jones Newswires; +46-8-5451-3095; jens.hansegard@dowjones.com