British Airways-owner International Airlines Group rules out new bid for Norwegian Air

British Airways owner International Airlines Group (IAG) will not make an another offer to buy Norwegian Airl and announced it will sell its remaining stake in the company.

Norwegian’s share price fell as much as 26 per cent – the lowest level since 2012 – on the news that a potential deal is off the table.

In a statement to the market today IAG said: “IAG confirms that it does not intend to make an offer for Norwegian Air Shuttle ASA and that, in due course, it will be selling its 3.93 per cent shareholding in Norwegian.”

In April IAG said Norwegian was an “attractive investment” and said it had built up a minority ownership in the company to establish a position to initiate discussions.

However the company rejected two offers from IAG in May last year, saying they undervalue the company.

Chairman of the Norwegian Board, Bjørn Kise, said: “We have been made aware of IAG’s intentions to sell its shares in Norwegian Air Shuttle ASA. Norwegian’s plans and strategy remain unchanged.

“The company’s goal is to continue building a sustainable business to the benefit of its customers, employees and shareholders.”

In a presentation for investors this month Norwegian said its strategy to 2020 is to maintain its short haul presence within Europe, grow its medium and long haul offering between Europe and the rest of the world, and target new and underserved markets.