British Airways and Iberia parent International Consolidated Airlines Group (LON:IAG) has no plans to revive a bid for transatlantic low-cost carrier Norwegian Air Shuttle, Bloomberg has reported. The news followed a Spanish report that an offer was likely to be made in the next 15 days.
IAG’s share price is flying lower in London in today’s session, having given up 0.59 percent to 455.00p as of 13:56 BST. The decline is largely in line with losses in the broader UK market, with the benchmark FTSE 100 index currently standing 0.53 percent lower at 7,563.24 points. The group’s shares have given up just under a third of their value over the past year, as compared with about a 0.5-percent fall in the Footsie.
IAG denies interest in Norwegian Air
Bloomberg reported today that IAG had said that it had no plans to revive the Norwegian Shuttle bid, after Okdiario newspaper reported that the FTSE 100 group intended to make an approach worth about $1.2 billion, almost double the budget carrier’s current market value of $652 million.
“We have said many times in the past few months that we are no longer interested in Norwegian Air,” IAG spokeswoman Laura Goodes told the newswire by telephone. “Nothing has changed.”
The FTSE 100 company, which also owns Ireland’s Aer Lingus and low-cost carriers Vueling and Level, said in January that it was not planning to bid for Norwegian and that it would be selling its 3.93-percent shareholding in the airline in due course.
Analysts on British Airways parent
Sanford C. Bernstein trimmed its stance on the blue-chip group to ‘market perform’ this week, further lowering its target on the IAG share price from 750p to 250p. According to MarketBeat, the British Airways and Iberia parent currently has a consensus ‘hold’ rating and an average valuation of 654.62p.