Norwegian rejects takeover bid from British Airways owner

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Norwegian rejects takeover bid from British Airways owner | Secret Flying

Low-cost airline Norwegian Air Shuttle has rejected two takeover offers from International Airlines Group (IAG).

 

Low-cost carrier, Norwegian Air Shuttle, has rejected two takeover offers from British Airways owner IAG.

 

The news initially sent shares in Norwegian down 10%, before recovering slightly.

 

In contrast, IAG’s share price rose 5.6% after reporting a 75% jump in profits in the first three months of the year.

 

Last year, IAG acquired a 4.6% stake in Norwegian with the intention to initiate discussion regarding a full offer for the firm.

 

However, IAG has so far failed to reach an agreement with the Oslo-based carrier.

 

In a statement IAG said: “IAG confirms that it has had contact with the Norwegian board regarding a possible offer, without reaching an agreement.

 

“IAG is currently considering its options in relation to Norwegian.”

 

British Airways has been accused of turning itself into a budget operator in recent years.