BA Norwegian Bid

British Airways Owner Considers Norwegian Bid - BBC

Excerpt from BBC

The owner of British Airways may bid for Norwegian Air Shuttle, the fast-expanding budget airline.

Buying the airline would allow International Airlines Group to increase its market share amid rising competition from low-cost carriers.

Norwegian said it had not been aware that IAG had acquired a 4.6% stake until media reports on Thursday.

Shares in Norwegian closed 47% higher after news of the bid interest emerged, while IAG fell 1.2%.

Norwegian said it has not held talks with IAG but said the interest "confirms the sustainability and potential of our business model and global growth".

IAG said it had bought a minority stake in the airline with a view to opening talks about a deal.

"The minority investment is intended to establish a position from which to initiate discussions with Norwegian, including the possibility of a full offer for Norwegian," IAG said.

However, it said no discussions have taken place and it had not decided whether to make an offer.

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