Norwegian rejects International Airlines Group takeover

Norwegian rejects International Airlines Group takeover

The board of Norwegian Air Shuttle has rejected two separate proposals from International Airlines Group in relation to an acquisition of 100 per cent of the share capital in the airline.

The conditional proposals were reviewed in conjunction with NAS’ financial and legal advisers and were “unanimously rejected”.

Norwegian said directors had rejected the bids because they undervalued Norwegian Air Shuttle and its prospects.

“The board of Norwegian Air Shuttle remains fully committed to delivering on its stated strategy, for the benefit of all Norwegian Air Shuttle shareholders,” read a statement.

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IAG last month took a 4.6 per cent stake in Norwegian as it mulled a takeover.

Yesterday, Qatar Airways said it would back IAG in a takeover of Norwegian Air Shuttle (NWC.OL), Qatar’s CEO said, while declining to give further details of his plans to set up a new airline.

Qatar Airways chief executive Chief Executive Akbar al-Baker said: “Whatever they do to expand their business it has been thought after well and we will support them.”

Qatar Airways is IAG’s biggest shareholder with a 21 per cent stake.