Aviation giant IAG no longer has any plans to buy Norwegian and will sell its entire holding, according to a press release.
Norwegian shares plunged by over 25 percent after the news. "Our strategy remains firm," tweeted Norwegian chairman Bjørn Kise.
In a brief text, IAG states that it will dispose of its 3.93 percent stake in the Norwegian airline, a sale that will take place "at an appropriate time.".
It was last spring that IAG confirmed that it had been in contact with the Norwegian NAS -21,48%s board regarding a possible bid, without reaching any agreement. In connection with the discussions, IAG bought a 4.6 percent stake in Norwegian, which has since been diluted due to a share issue.
Norwegian's management simultaneously rejected the Spanish-British IAG's advances.
On Thursday afternoon, Norwegian shares plunged by as much as 25 percent and were trading at 2:15 p.m. at 143.75 Norwegian kroner, the lowest level since the end of 2012.
The analyst community is divided in its view of the low-cost airline. According to Bloomberg's gigantic database, seven out of 17 analysts have a buy recommendation for the airline's stock. Five have a sell and five have a hold. The target price is an average of 227 Norwegian kroner.
After the news was released, Norwegian's chairman of the board Bjørn Kise wrote on Twitter:
”"Norwegian's plans and strategy remain firm. The company's goal is to continue building a sustainable business for the benefit of customers, employees and shareholders.".
Source: di.se
