British Airways owner IAG won’t bid for Norwegian Air
IAG abandoned an 8-month pursuit of Norwegian Air Shuttle, leaving the indebted airline reeling as it faces a cash crunch during the slow winter season. IAG “does not intend” to make a further bid and will be selling a 3.9% stake in due course, it said Thursday. Norwegian slumped as much as 26%, the most ever, while IAG reversed earlier declines to trade higher. CE Bjorn Kjos previously rejected 2 offers from IAG as undervaluing the business. The BA owner responded by saying it wouldn’t engage in a bidding war, though CE Willie Walsh hinted that he was still interested in November, fuelling speculation about a sweetened approach. IAG’s decision to walk away will spur concerns about Norwegian’s ability to weather a cash crunch after the company announced last week that it would close some bases and routes as overcapacity squeezes fares across the industry. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2019-01-25/oneworld/british-airways-owner-iag-won2019t-bid-for-norwegian-air
https://portal.staralliance.com/cms/logo.png
British Airways owner IAG won’t bid for Norwegian Air
IAG abandoned an 8-month pursuit of Norwegian Air Shuttle, leaving the indebted airline reeling as it faces a cash crunch during the slow winter season. IAG “does not intend” to make a further bid and will be selling a 3.9% stake in due course, it said Thursday. Norwegian slumped as much as 26%, the most ever, while IAG reversed earlier declines to trade higher. CE Bjorn Kjos previously rejected 2 offers from IAG as undervaluing the business. The BA owner responded by saying it wouldn’t engage in a bidding war, though CE Willie Walsh hinted that he was still interested in November, fuelling speculation about a sweetened approach. IAG’s decision to walk away will spur concerns about Norwegian’s ability to weather a cash crunch after the company announced last week that it would close some bases and routes as overcapacity squeezes fares across the industry. <br/>
