IAG share price flies higher as group rules out bid for Norwegian

Shares in International Consolidated Airlines Group (LON:IAG) have climbed higher in London in today’s session as the British Airways and Iberia parent announced that it was not planning to bid for low-cost transatlantic carrier Norwegian Air Shuttle. The London-listed company, which also owns Aer Lingus and budged airlines Vueling and Level, took up a 4.61-percent ownership position in Norwegian in April last year, saying at the time that it considered the low-cost transatlantic carrier to be an attractive investment.

As of 13:31 GMT, IAG’s share price had added 1.51 percent to 640.53p, outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.43 percent lower at 6,813.46 points. The group’s shares have lost less than two percent of their value over the past year, as compared with about a 10.6-percent dip in the Footsie.

IAG rules out bid for Norwegian

IAG announced in a short statement today that it does not intend to make an offer for Norwegian Air Shuttle. The company further said that, in due course, it will be selling its 3.93-percent shareholding in the transatlantic carrier.

Group not getting into bidding war

The announcement comes after earlier this week, the Irish Independent quoted IAG’s chief executive Willie Walsh as saying that the FTSE 100 group would not get into a bidding war for the Scandinavian airline.

“I like Norwegian. I like the brand. I like what Bjorn (CEO Bjorn Kjos) had done,” Walsh said, speaking at a dinner hosted by The Aviation Club UK, adding, however that Norwegian's share price has been declining and that there had been some rumour that another potential bidder could emerge.

“I’m not getting into a bidding war,” IAG’s CEO continued, as quoted by the newspaper.

As of 14:16 GMT, Thursday, 24 January, International Consolidated Airlines Grp share price is 636.40p.