IAG buys stake in Norwegian as first move in takeover talks
13 April, 2018, 01:24 | Author: Terri Saunders
IAG, holding that brings toger Iberia, British Airways and Level, has announced this Thursday that studies launch a takeover bid on Norwegian Air Shuttle ASA (Norwegian), which has already acquired a share of 4.61%, as announced today group to National Commission of Stock Market (CNMV).
IAG (International Airlines Group) revealed it has acquired a 4.61% stake in the airline "to establish a position from which to initiate discussions, including the possibility of a full offer for Norwegian".
Shares in the struggling budget airline jumped 37pc following initial reports of IAG's approach, with the company now valued at $1.22bn (€1bn).
However, Norwegian said it had no prior knowledge of the minority acquisition by IAG.
"Norwegian believes that IAG's interest in the company confirms the sustainability and potential of our business model and global growth", it said.
Norwegian Air Shuttle has rocked the long-haul market with offers like US$140 tickets from Edinburgh to NY.
Norwegian carries almost 6 million United Kingdom passengers annually from airports in London, Edinburgh and Manchester, England, to 50 destinations worldwide, and has been bolstering its long-haul flights to the USA since it introduced them in 2014.
IAG, formed by the merger of Iberia and British Airways, has used acquisitions to grow in the past, adding Aer Lingus and Spain-based low cost carrier Vueling to its portfolio in 2015. In the long haul low-priced segment, both NAS and LEVEL started recently and the combination of both carriers and its short-haul counterparts could generate an interesting offering of connections for intercontinental travelers.
EasyJet was up 2%, Ryanair up 1.7% Wizz Air 3% after IAG confirmed its position with Norwegian, however.
This year, Norwegian wants to boost its offer by 40 percent.
IAG said in a statement it considered Norwegian to be an "attractive investment".
The purchase of Norwegian would benefit IAG's British Airways gain a bigger share of the low-priced market.
Even after Thursday's rally, Norwegian's founder and top owner, CEO Kjos who controls a quarter of the company's shares, is expected to demand a significantly higher price before selling, said Korsvold.
A career-high 23 points from rookie Luke Kennard helped the Detroit Pistons coast to a 119-87 win over the Chicago Bulls . Houston handled the Timberwolves during the regular season in all four matchups, sweeping the season series .
Officers say the 26-year-old started throwing some of the approximately $1,600 (£1,128) he's accused of stealing over her fence. Rowley was first spotted by Rhode Island State Police after his vehicle details were entered into a national database.
Joe Kelly dotted Austin between the shoulder blades with a 98 miles per hour fastball, and this time cooler heads didn't prevail. He has allowed two earned runs or fewer over six-plus innings pitched in each of his six career starts against NY at Fenway.
The company only released Sajudin from his contract after the 2016 election amid inquiries from the Journal about the payment. In a statement on Thursday, AMI said it had determined that the rumor wasn't true, which is why it didn't run a story.
Because of this, Durant signed a two-year contract worth $53 million, with a player option for the third year. Golden State will enter the NBA Playoffs, which commence Saturday, as the Western Conference's No. 2 seed.
In a follow-up tweet , Trump said America's relationship with Russian Federation "is worse now than it has ever been". Trump also has blamed supporters of Assad in Iran and Russian Federation for the attack.
Comey Says Trump Is Like a 'Mob Boss' in Upcoming Interview
White House allies, including the Republican National Committee, are taking the lead in attempting to discredit Comey's anecdotes. Republicans will highlight Democratic criticism of Comey over his handling of the investigation into Hillary Clinton's email.
Spotify & Hulu Team up for Joint Subscription Plan
Stockholm-based Spotify had 157 million user at the end of 2017, including 71 million paid subscribers. Spotify is also giving a discount for PS4 gamers with 10% off on their monthly Spotify Premium sevice.
Why Mark Zuckerberg didn't want to talk about your data
His notes show that Zuckerberg was well-prepared for the questions that were going to be asked by the 44 Senators who grilled him. The stock was already rallying earlier Tuesday as investors digested the previously released prepared remarks from Zuckerberg .
Student killed in school bus accident identified
The students travelling in the bus were mostly from Class 5 and below, of Wazir Ram Singh Pathania Memorial Public School. Prime Minister Narendra Modi's office tweeted that Mr Modi was "anguished" over the news of the deaths.
Jet Airways not to take part in Air India divestment
The national carrier is staying on taxpayers' money under the turnaround plan approved by the previous UPA government in 2012. The Air India logo is seen on the facade of its office building in Mumbai , India, July 7, 2017.