Norwegian Plays Coy, Rejects Two IAG Bids Despite Clear Interest In Buyout

Read more at:

In mid-April IAG (the parent company of British Airways) acquired a 4.61% ownership stake in Norwegian. This seemed to come out of left field, as there weren’t really rumors of this leading up to the announcement. British Airways also expressed interest in the possibility of a full takeover of Norwegian. This isn’t much of a surprise, at least long term — Norwegian is trying to grow but is losing money, while British Airways is hugely profitable and views Norwegian as their biggest competitor. It’s only natural that they’d love to eliminate their biggest competitor.

Initially Norwegian management said that they had no interest in being acquired, though I think it goes without saying that every airline has a price. Today it has been announced that Norwegian has turned down two separate 100% takeover bids from IAG. Here’s Norwegian’s press release: