Norwegian shares surge 35 percent after the announcement.
– It seems that IAG wants to explore the possibilities of taking over all of Norwegian, says Jacob Pedersen, aviation analyst at Danish Sydbank, to TT.

British Airways owner International Airlines Group (IAG) writes in a press release that it is considering buying Norwegian and at the same time IAG confirms that it has acquired 4.61 percent of the ownership in the Norwegian airline.

IAG points out that no discussions with Norwegian have yet taken place.

”Interesting battle awaits”
Norwegian's shares were halted on the Oslo Stock Exchange shortly before lunch. When they later resumed trading, they rose 35 percent to 243 Norwegian kroner.

TT: Is a possible deal good for British Airways and Norwegian?

– It is up to the owners of Norwegian to decide what is good or not, says Jacob Pedersen.

And he adds:

– It will be a very interesting battle. This is Bjørn Kjo's (CEO and founder of Norwegian) baby and it is uncertain whether he wants to sell, says Pedersen.

According to Pedersen, IAG's interest in Norwegian is, among other things, about reducing competition in London.

– It would probably slow down competition from Norwegian in London, says Jacob Pedersen.

Norwegian: ”No prior knowledge”
Norwegian writes in a comment to TT that the company only learned today through the media that IAG had purchased 4.6 percent of the shares in Norwegian Air Shuttle ASA.

”"Norwegian has not had any dialogue with IAG about this. IAG's purchase of shares in Norwegian confirms that a major international airline group believes in the company's business model and global growth strategy."”

SAS shares also reacted to the announcement and rose 9 percent to SEK 21.46.

Source: TT