British Airways owner ‘considering options’ after failed Norwegian bids
Scandinavian airline Norwegian (NAS) has turned back two takeover bids from International Airlines Group (IAG), owner of British Airways.
According to a report by Sky News, the low-cost carrier said the proposals were unanimously rejected by its board because they “undervalued NAS and its prospects”.
IAG, which is headquartered in London, was set to start takeover talks after acquiring a 4.6% stake in Norwegian last month.
Today (May 4), IAG confirmed it failed to reach agreement and is now “considering its options”.
IAG reported a 75% increase in its Q1 operating profit, which stood at £247m, not including one-off costs.
The group, which also owns Spain’s Iberia and Vueling and Irish airline Aer Lingus, generated revenues of around £4.4bn in the quarter.
Norwegian issued new shares in March in a bid to strengthen its balance sheet, amid rising costs and bigger losses created through an expansion of its long-haul business.
The airline said IAG was one of a number of groups to have made advances in recent weeks.
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