Norwegian Air negotiates with easyJet to face IAG

Scandinavian low cost Norwegian Air Shuttle, has rejected two offers for its purchase from its rival IAG, maintains contacts with other European air groups to look for other alternatives.

According to market sources, among them would be easyJet, with which has sealed an agreement last year to feed its long-haul flights from Gatwick airport (London) and, in the medium term, also from Barcelona and Paris. Sources from easyJet and Norwegian have declined to comment.

This morning, Willie Walsh, CEO of IAG – which integrates British Airways, Iberia, Vueling and Aer Lingus – confirmed in the presentation of the results of the group that “we have maintained contacts with the Norwegian board, without having reached an agreement, we are considering all options. ”

IAG revealed in mid-April that it had bought 4.6% of the low-cost Scandinavian airline, which has revolutionized the European sector with its long-range flights at cheap prices, in an operation valued at 30 million euros at prices of market.

To execute the operation, the group has commissioned JPMorgan to seek financing for an operation that would exceed 3.6 billion euros, including Norwegian’s market capitalization and net debt, and without including a potential premium, according to EXPANSIÓN on December 18.

For its part, Norwegian’s board of directors also confirmed this morning that it has received two separate conditional offers from IAG in connection with the acquisition of 100% of the company’s capital.

The proposals were reviewed together with financial and legal advisers, and were rejected unanimously because they underestimated Norwegian and its future prospects.

“Norwegian’s board of directors remains fully committed to the execution of its established strategy and to the benefit of all shareholders,” the company said. The Norwegian CEO, Bjørn Kjos, is the company’s first shareholder, along with the chairman, Bjørn H. Kise, both control 26% of Norwegian.

Since the announcement of the entry of IAG into the capital of Norwegian and which was studying the possibility of launching an offer on 100% of its rival, the Norwegian has revalued 67.7% on the stock market. Today, however, the markets have punished the lack of agreement.

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