Norwegian has confirmed that it has received two proposals for a complete take-over by International Airlines Group (IAG), but has rejected the offers because they ‘undervalue’ the airline.
International Airlines Group - the parent company of British Airways and Spain's Iberia which was created by the merger of the two carriers in 2010 made a statement in its quarterly earnings announcement that it had failed to reach an agreement with Norwegian Air Shuttle. The group says it is now “considering its options”.
The British Airways and Iberia owner acquired a 4.61 per cent stake in Norwegian last month, saying it was a means of establishing “a position from which to initiate discussions” regarding a take-over.
Norwegian says its board reviewed IAG’s offers with its financial and legal advisors before making the decision to reject the bids, claiming its members “remain fully committed to delivering on its stated strategy for the benefit of all NAS shareholders”.
The low-cost carrier has fallen on rough financial times, posting a net loss in 2017. However, its investment strategy of establishing new routes and subsidiaries and updating its fleet appears to be making a difference, as the carrier’s first quarter results showed signs of improvement.