M&A

3 November, 2009

UPDATE 1-Fidelity lifts Vueling stake to over 4 pct

* Fidelity buys part of Inversores Hemisferio stake

* Shares down 0.77 pct, off lows

(Adds detail, shares)

MADRID, Nov 3 (Reuters) - U.S. investment fund Fidelity has lifted its stake in Spanish low-cost airline Vueling (VULG.MC) to above 4 percent, according to a filing with stock market regulator CNMV.

A source with knowledge of the deal said the investment fund bought about 3 percent of the 14 percent shareholding that was placed in the market by one of Vueling's core shareholders last week at 11 euros per share.

By 0930 GMT, Vueling's shares were down 0.77 percent at 12.85 euros, off a low of 12.77, and compared with a 1.65 percent decline on Madrid's general share index .

(Reporting by Tracy Rucinski; editing by Simon Jessop)

Source: http://www.reuters.com