Norwegian Air Rises Sharply On Report Of Renewed IAG Interest
Shares in Norwegian Air soared this week as investors reacted to a report of renewed interest in the budget carrier from British Airways-owner IAG .
Norwegian's share price rose 11% in early trade on Tuesday May 22 to 278 crowns in Oslo after Spanish newspaper Expansion said IAG is preparing to bid 330 crowns per share for the Oslo-listed airline, citing unnamed sources.
"What we can say, is that it's business as usual for us, we're expanding rapidly and sales are good. We can't comment on the ownership situation," Tore Oestby, Norwegian Air's Executive Vice President for Strategic Development, told Reuters.
"Our crystal clear focus is on the purely operational, and to work on costs and efficiencies," he added.
IAG last month disclosed it had bought a 4.6% stake in Norwegian, but the budget carrier later said it had rejected two takeover proposals.
On May 18, IAG Chief Executive Willie Walsh told Reuters that Norwegian Air was not a must-have deal, and ruled out making a hostile offer.