IAG International Airlines Group is planning to make a third bid for Norwegian Group despite its two previous proposals having been rejected as low-ball offers.
Sources familiar with developments told Spain's Expansion newspaper that the European carrier conglomerate's latest bid would offer NOK330 kroner (USD40.67) per Norwegian share thus valuing the LCC at USD1.79 billion in total.
Neither party commented on the report.
In April, Expansion reported that IAG had hired JPMorgan to help secure EUR4 billion (USD4.97 billion) in funding for the purchase of which EUR1.5 billion would be used to acquire Norwegian's stock while the remaining EUR2.32 billion would be towards refinancing its considerable debt portfolio.
Chief executive Willie Walsh told Reuters last week that despite its keen interest in the carrier, IAG would not pursue a hostile takeover strategy.
“This isn’t a deal I have to do. We have expressed an interest. If they don’t want to be bought by IAG, fine,” he said. “I am not going to do anything hostile, that’s not my style.”
According to The Independent, Walsh has said he would retain IAG's current low-cost brand, LEVEL (Barcelona El Prat), even if IAG were to land Norwegian. As such, IAG is even considering deploying LEVEL to its Dublin International hub where it would ply transatlantic routes alongside its full-service sibling, Aer Lingus (EI, Dublin International).
