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Norwegian rejects two takeover bids from IAG
IAG's quiet plans to swallow all of Norwegian Air Shuttle were unwrapped on Friday, as the nascent Scandinavian low-cost carrier revealed it has already rejected two bids from the British Airways owner.
The FTSE 100 airline group, which also owns Iberia, Vueling and Aer Lingus, bought a 4.6% stake in Norwegian in April, reportedly with a view to begin takeover discussions.
Norwegian flies a relatively minor short-haul network in Europe, but has made most of its recent business in transatlantic flights with ultra low fares out of airports in the UK and Ireland.
IAG, meanwhile, has been busy setting up its own low-cost, long-haul airline in Spain, dubbed Level.
On Wednesday, IAG's biggest shareholder Qatar Airways told media in Cardiff that it would back the group on its goal to acquire Norwegian, though little has been said by IAG itself on its plans.
"Qatar Airways will always support IAG in anything they do," said Qatar chief executive Akbar al-Baker.
However, Norwegian's board released a statement to the Oslo Stock Exchange, revealing it had already received and rejected two separate offers from IAG.
"The board of Norwegian Air Shuttle (NAS) confirms that it has received two separate conditional proposals from IAG Group in relation to an acquisition of 100% of the share capital of NAS," the statement read.
"These proposals were reviewed in conjunction with NAS' financial and legal advisers, and were unanimously rejected on the basis that they undervalued NAS and its prospects.
"The board of NAS remains fully committed to delivering on its stated strategy, for the benefit of all NAS shareholders."
IAG released its own financial update on Friday, though it made no mention of its investment in Norwegian or its takeover plans in the release.