FORNEBU, NORWAY – Another major airline group has reportedly thrown its hat into the ring to buy low-cost carrier Norwegian Air.
According to the Independent, Lufthansa has confirmed that it’s currently in talks with the budget carrier after Norwegian rejected two bids by IAG, British Airways’ parent company.
In April, IAG announced it had acquired 4.61% of Norwegian Air Shuttle “to establish a position from which to initiate discussions, including the possibility of a full offer for Norwegian.” However, the two bids it has made since then were rebuffed by the board of Norwegian, with Willie Walsh, chief executive of IAG, saying that the carrier was not a “must-have target”.
Norwegian has not made any additional comments about Lufthansa other than to say it had “received enquiries from several parties” following IAG’s bids.
After news broke about Lufthansa’s possible bid, Norwegian’s share price rose 10% on Monday to close at £25.44, which puts the value of the airline at over £1.1 billion.