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Norwegian rejects two formal takeover bids from British Airways parent IAG

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A few weeks ago we reported that IAG, BA’s parent, had bought a 4.6% stake in Norwegian Air Shuttle with a view to launching a full takeover.

On Friday morning, Norwegian issued a statement to say that IAG had made two formal bids to take control of Norwegian.  Norwegian has rejected both of them “on the basis that they undervalued NAS and its prospects”.

Norwegian rejects two bids from IAG

This is, of course, a very similar situation to what happened with Aer Lingus.  Various initial bids were rejected until IAG made a series of concessions and guarantees that were attractive to the Irish Government.

It is a different game this time.  The 72-year CEO of Norwegian, Bjorn Kjos, has a 27% shareholding and it will be virtually impossible for IAG to acquire 50.1% without his consent.  This is why the Norwegian share price fell on Friday rather than rising, which is what you would expect to happen if the possibility of a juicy knock-out bid was expected.

IAG is not known for overpaying, and Kjos is clearly – at least in public – determined not to sell unless he achieves what others see as an unrealistic valuation.  IAG may have to settle for its existing 4.6% stake and wait to see if Norwegian hits serious financial trouble.


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Comments (80)

This article is closed to new comments. Feel free to ask your question in the HfP forums.

  • Lady London says:

    Btw : Vaguely not OT as Etihad also has a 49%? share in them, Alitalia has been sending and advertising return fares to Italy, that are considerably lower cash fares than previously in the past couple of months. £68 return seen advertised today. Until very recent months would have been £110-120.

  • Tilly says:

    OT – I’m flying back from YYZ to LHR next Sunday (13th). Tried to reserve my seats in advance as 7 days away now (BA bronze) this morning but MMB still showing a charge to reserve seats. The only thing I can think of is the time difference between Toronto and here but even with that it is already early hours of Sunday there. The flight is a late one, is the 7 days in advance in hours (168 hours)?

    Has anyone else had experience of this? Any suggestions please?

    TIA

    • Lyn says:

      Tilly, I think it probably 7 days ahead local time wherever the flight is departing from.. So Sunday evening Toronto time at whatever time the flight is supposed to depart. There could be a short delay after that as well.

      • Tilly says:

        Thanks Lyn. I’ll do it first thing tomorrow morning then as not going to be crazy enough to wait up until 3am tonight.

        • Stu N says:

          Yes -it’s exactly 7 days out based on time of departure. In practice it seems to be the start of the hour that hit T-168, so for example if departure was 1545 BST next Monday you could nab seats from 1500ish BST tomorrow.

  • RussellH says:

    > The 72-year CEO of Norwegian, Bjorn Kjos, has a 27% shareholding and it will be virtually
    > impossible for IAG to acquire 50.1% without his consent.

    Is that really true? Are the other shareholders, excluding IAG and the Norwegian state investment fund (9.9%) really so keen to hold on? I would have thought that a significant proportion would jump at the chance of a clean exit into IAG, which, whatever you may think of its service levels, is a far more stable business proposition!

    IAG also pays a dividend; I cannot imagine that Norwegian does!

    • Rob says:

      If the public shareholders were not behind Kjos they could have sold at any point.

      • RussellH says:

        Unless they have been holding on for an offer from someone else, thinking that that was bound to be a better deal than selling in the open market. Even though they fell 10% on the latest news, they are still around 100% up on where they were before IAG announced their holding.
        TBH, I cannot imagine anyone holding the shares for the long term with that kind of performance.
        And if Kjos has a heart attack, or a stroke (not impossible at his age), then surely all bets are off?

  • Doug M says:

    OT: IHG Accelerate. Never really looked properly at this before as it’s always seemed so unachievable for me. But looked at this one and most of it can be done with two HIE stays if things are stackable. So if I have x for two HIE stays, and y for booking through the app twice, and z for a stay in May, can I book two separate nights through the app for HIE, making sure one is in May and meet all the criteria? If I can I seem to have a total of 34,000 points for two £43 nights at HIE Excel. Does that seem worth it? Also, can I check in, leave the key on the bed and go?
    Cheers.

    • Genghis says:

      Yes, yes and yes

    • Lyn says:

      Doug – Normally a stay specifically in May wouldn’t be part of the Accelerate completion bonus, it would usually be separate. (For instance I have stay once for 2,000 points as one of the challenges to reach the completion bonus, but also a separate stay in May for 2,000 points that is just an add on). So worth checking because you may have more flexibility re dates and not be limited to May.

      Also 2 HIE stays may mean stays at 2 separate HIEs. Again worth checking the terms,

      • AlanC says:

        I got caught out on the 2 HI Express stays before. Headline said 2 stays but dig into the T&C’s and it was 2 different properties. Lost out on the completion bonus and that challenge.
        Complained to IHG about it and got 15,000 GOGW.

    • Doug M says:

      Thanks both.

  • JamesB says:

    OT Bit: Anybody know how soon after being rejected I can reapply for the same amex card again? I was under the impression that it was one month but amex CS told me this morning it is three months. Should I trust the CS agent or is this another exampld of them talking nonsence? I cancelled a Tesco and a Sainsbury creditt card at the end of April, how long befire those cancellations are reflected in my credit report or does it vary by card provider? Thanks.

    • Peter K says:

      I’m no expert, but from what has been written in the comments previously on here it seems 3 months is correct.

    • George says:

      It is three months, and if you apply within that period there’s a 50/50 chance they won’t even run the application, they just send a polite letter to let you know they cancelled the duplicate application (no credit pull).

      Generally cancellations appear on report by +60 days from balance being zero.

      • JamesB says:

        Thanks Peter and George. It is just a platinum companion card so I will wait the three months, no point my causing a fuss over that.

  • Kinkell says:

    BITS: 3 of us travelling ET on same BA booking. I have Silver status. I get fast track and boarding in Gp2. The others are not identified as fast track and board Gp3.. Do we all get the fast track and board as Gp 2 given we are all on same booking made by me or are we separated out? ( most likely I’ll end up going with the others!) what is BA’s stance on this sort of scenario?
    Thanks

    • Genghis says:

      Just all board in Group 2.

    • Lyn says:

      Others will probably share their experiences, but I think you would probably be fine since it the same booking.

      I had OneWorld Sapphire (= to BA Silver) until a year ago. My husband has always able to use LHR fast track and BA priority boarding with me, whether on the same or a separate booking. I don’t know if anything has changed in the last year though.

    • Tilly says:

      The BA site says “It is possible that customers travelling together may receive different group numbers. In this case, please make your way to the gate where you will be able to board together.”

  • Scott says:

    OT – anyone having issues logging into BA Exec Club? For the past few days, after entering my login details, I get: Sorry we can’t show you this page at the moment.

    Please try the following actions: Restart your browser and try again / Try using a different browser
    If these steps fail to resolve the problem, please contact us, quoting the following information: Our reference: / Your IP address: Time:

    I’ve tried two browsers, same issue. Occasionally I’ve been able to log in but then get an error navigating to the page I need. Not contacted them yet, but will do so, unless this is a wider issue.

    • RussellH says:

      Yes, I was getting exactly the same. Strangely, clicking the Reload button then took me into the site.

  • Kinkell says:

    I can’t bring up any of my flight bookings beyond the 3 that are shown on the page. On clicking the icon to show more flights takes me to an error page, I can access the other bookings by putting in booking ref and name, but it is far less convenient. IT glitches in time for bank holiday melt down?

    • Kevin H says:

      Kinkell – it’s been like that for a quite a while now. No idea if or when BA’s IT Dept will get around to fixing it.
      Meantime, if you click on “manage my booking” for any 1 of the 3 bookings shown and then click on “my other bookings” at the top of that page, all your future bookings will be there – you just need to scroll down the page.

      • Kinkell says:

        Thanks all. @KevinH , tried that and I still get the error message which is why I go into booking ref and name.At least I can still access them for the moment!!

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