Shares in Norwegian Air rise after IAG denies report of another offer
Reuters
Published Jul 05, 2019 08:42
By Gwladys Fouche and Isla Binnie
OSLO/MADRID (Reuters) - Shares in budget carrier Norwegian Air (OL:NWC) rose on Friday after British Airways and Iberia owner IAG (L:ICAG) denied a Spanish media report it was preparing another offer for the airline.
The shares were up 6.3% at 0734 GMT, outperforming a flat Oslo benchmark index (OSEBX) after rising as much as 12% at the opening of trading.
"We have said that we are no longer interested in Norwegian several times in the last few months. Nothing has changed," an IAG spokeswoman said.
Spanish news website OKdiario reported late on Thursday that IAG would make an offer for Norwegian within a fortnight, citing anonymous sources.
IAG said in January that it would not bid for Norwegian and planned to sell its 3.93% shareholding in the company.
Norwegian subsequently raised 3 billion Norwegian crowns (279.4 million pounds) to shore up its finances. Norwegian has shaken up long-haul rivals by offering cut-price transatlantic fares, but its rapid expansion has left it with hefty losses and high debts.
"We do not think that in Norwegian's current state the debt-ridden airline can hope for a white knight - it will have to try and survive on its own," Bernstein said in a note to clients, which also noted IAG's denial of an offer.
Norwegian Air declined to comment.
Get The App
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.