Last month it became clear that International Airlines Group (IAG), the owner of British Airways, was looking to buy its low-cost rival, Norwegian Air. IAG quietly acquired a 4.61% stake in the Norwegian carrier before announcing its intention to initiate discussion “including the possibility of a full take over”.
Today, Norwegian’s board unanimously rejected two takeover proposals from IAG, claiming that they undervalued the airline and its prospects.
Norwegian has made clear that IAG is not the only interested party, having received “several inquiries” from unnamed suitors (including rival airlines), in the subsequent days following IAG 4.61% investment.
The Oslo-based carrier is likely of particular interest due to its rapidly expanding low-cost long-haul operation based at London Gatwick, which has been pressurising other major airlines such as IAG, Lufthansa and Air France to launch their own low-cost alternatives.
Norwegian has given no details regarding the two offers it received for 100% of the company.