IAG ‘to make a third €1.5bn offer for [airline] Norwegian’

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Spanish newspaper Expansion reported yesterday (see here, Chrome can translate) that BA’s parent company, IAG, is to make a third offer for Norwegian.

This will value the airline at 330 NOK per share, giving the equity a total valuation of €1.52bn. This is a 31% premium to the share price last Friday although, as Norwegian carries a huge amount of debt, the actual premium to the Enterprise Value of the business is much lower.

IAG Norwegian takeover bid

Since the Norwegian CEO controls 27% of the company, the decision will in reality rest with him. With the oil price remaining fairly high by recent standards, Norwegian will face increasing pressure from its lenders.

Whilst Norwegian has said that other airlines have expressed interest, I would be less certain.

As IAG is likely to be a more conservative owner of the company – and may well close down the long-haul operations entirely to free up aircraft for LEVEL, BA, Iberia and Aer Lingus – Air France KLM and Lufthansa might be happier to sit it out and reap the benefits of reduced competition without having to spend any money of their own.

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British Airways and Avios

This article is closed to new posts. Discussion continues in the HfP Forums.

Stuart says:

22 May22 May 06:20

OT How does the expiry on the IHG Credit Card free night work? Does the free night have to be booked or redeemed within 1 year?
- David says:
  
  22 May22 May 09:30
  
  It must be redeemed within 12 months from date of issue.
  - Alex W says:
    
    22 May22 May 09:55
    
    I thought as long as you booked within the expiry (mine is more like 13 months) you could stay after the expiry date?
    - Stuart says:
      
      22 May22 May 11:23
      
      Thanks
      
      I’m going to try and call the call center as it won’t let me book online after the expiry date.
the real harry1 says:

22 May22 May 06:55

Same story on FT, if link goes behind paywall just google ‘After two unsuccessful attempts to pass through an airport metal detector, passengers are required to remove all visible forms of trouser support, and waddle through for a third time — risking indignity to avoid that weird 360-degree cylindrical body scanner. Or that burly security operative with slightly soiled rubber gloves.

And, this morning. British Airways owner IAG may be contemplating a similarly “belt and braces” approach in its bid to get to Norway – or at least bid for Norwegian Air Shuttle. If reports in Spanish newspaper Expansion can be believed, IAG plans to make a third offer of €1.52bn after two previously unsuccessful attempts.’

https://www.ft.com/content/7de8318a-5cc4-11e8-9334-2218e7146b04
Wally1976 says:

22 May22 May 07:24

OT – can anyone confirm, please, if it is possible to amend bookings made with the Hilton free weekend night voucher that came with the Hilton Barclaycard Visa (no longer available to new customers)? Thanks
- MarkH says:
  
  22 May22 May 07:49
  
  Yes – up until 24hrs before i think
- MattC says:
  
  22 May22 May 07:58
  
  Ring the hotel.
  At least with paid stays I’ve had no problems doing this even on advanced tickets “which can’t be changed”. They do so as a one off and it seems to need to hotel to actually do it (not Hilton central bookings), or at least agree to the change. Might help that I’ve been Gold or Diamond when doing this. With a reward night you should be able to cancel and reissue so a call is about saving time.
- wally1976 says:
  
  22 May22 May 08:59
  
  Thanks Matt and Mark
- Luthar says:
  
  22 May22 May 09:46
  
  Yes. I’ve had to amend me booking three times due to unforeseen circumstances. As long as it’s more than 24 hours before the booking.
  - wally1976 says:
    
    22 May22 May 22:02
    
    Thanks Luthar
Alan says:

22 May22 May 08:01

If this goes through I really hope they don’t kill off the short-haul routes, EDI-OSL is a nice easy positioning flight for an ex-OSL departure, would be a right pain to have to go via London.
callum says:

22 May22 May 08:08

I hope they don’t take it. I think Norwegian is a great airline and don’t buy into the “it’s about to go bust” scare stories (not least because if that was true, IAG would have no need to buy them anyway). Though I am of course no expert!
- Doug M says:
  
  22 May22 May 09:59
  
  They lack cash, and are reliant on lower oil prices. IAG want to buy them to get the planes and landing slots. Part of the reason people like Norwegian is that it’s not sustainable, you’re getting more than you’re paying for, it’s in effect buying your business to support it’s growth. But eventually you have to start making money or you fold, or get bought.
  - Callum says:
    
    22 May22 May 10:38
    
    Have you looked at their balance sheets or are you going off a load of soundbites?
    
    Their short haul operation was (and presumably is) profitable. Their losses are currently less than the profits they were making before their long haul expansion. I find it hard to believe that their creditors will ever just suddenly pull out without trying to fix them first – it wouldn’t be beyond practicalities for them to just go back to being a profitable short haul airline again if necessary.
    
    If their demise is as certain as you seem to think it is, why don’t IAG wait and buy the aircraft and landing slots when they go bust? The obvious answer is that IAG don’t believe they’re going to go bust.
    - Doug M says:
      
      22 May22 May 14:54
      
      Cash is real, profits get stated in a variety of ways. Let’s see what happens.
    - callum says:
      
      23 May23 May 06:21
      
      Soundbites it is!
Peter K says:

22 May22 May 08:37

Shame the NOW TV offer isn’t as good as the 500 clubcard points for £12.50 like last time 🙁
- Genghis says:
  
  22 May22 May 08:43
  
  +1. My boss still protests that I agreed to sell him a full box, not a now tv box and a movies voucher with the sky movies money voucher removed…
- Kathy says:
  
  22 May22 May 13:39
  
  I still have 3 boxes to get rid of somehow, sans vouchers.
  - Alex W says:
    
    22 May22 May 22:13
    
    Managed to flog 2 on eBay complete with vouchers. Maybe I just got lucky.
Tilly says:

22 May22 May 08:42

O/T – after The Original Nick asked yesterday if BA had contacted me about my complaint for the return flight from YYZ last week they phoned me this morning. Outcome is I get 6k avios credited and the crew will be given the feedback.
- TripRep says:
  
  22 May22 May 13:00
  
  Tilly – are you happy with that (I missed the cause of the complaint)
- The Original Nick says:
  
  22 May22 May 16:59
  
  Hi Tilly, I managed to squeeze 60000 out of them.. But my flight experience was the worst I’ve ever known in a premium cabin. I didn’t even eat or drink and had no IFE.
  - Tilly says:
    
    22 May22 May 17:47
    
    TripRep, am satisfied with that. No-one died, was just disappointed about lack of meal (only ended up with fruit) and having to ask for a drink with my brekkie rather than being offered. Service wasn’t good but I did get apology on-board. I wasn’t expecting much.
    
    Nick – that’s a decent amount, more than what i “paid” in points for the seat. I only redeemed 50k and used a 241 for hubby’s seat for that flight. My IFE was working, not that I really used it.
    - The Original Nick says:
      
      22 May22 May 20:23
      
      Tilly, I was on a Lloyds Upgrade Voucher.
    - Tilly says:
      
      22 May22 May 22:05
      
      Guess that means you paid cash for PE? So the poorer service/flight you experienced would have been more disappointing. 60k is a good result.
wally1976 says:

22 May22 May 09:01

Another OT – sorry – could someone remind me of the ‘trick’ for transferring Amex MR points to Radisson Rewards (Club Carlson)? I think you have to drop some digits from the beginning of the account number?? Thanks.
- Genghis says:
  
  22 May22 May 09:20
  
  Need to call. You’re thinking SPG
  - wally1976 says:
    
    22 May22 May 09:25
    
    Thanks Genghis, I know with SPG you have to add four zeroes to the beginning but thought there was something similar for Radisson…
    - Hasim says:
      
      22 May22 May 12:08
      
      It is something like the first five digits. Long wait to confirm, takes 10 days approx. Good luck sir.
- wally1976 says:
  
  22 May22 May 11:52
  
  It seems to work if you miss the first 6 digits off (601599 for everyone I think). I’ve transferred the minimum 3 points this way so I’ll see if they arrive in the next few days before doing some more!
  - Genghis says:
    
    22 May22 May 12:22
    
    Thanks for reporting back. Now I know. I had to call up.
    - Hasim says:
      
      22 May22 May 13:31
      
      If you search online many times you can find this very valuable information. It takes a long time to confirm when you do it online. By phone maybe it is confirmed so much quicker???