IAG prepping £1.3bn offer for Norwegian

International Airlines Group is reportedly set to make a third run at a takeover of low-cost carrier Norwegian, one, which if successful, would value the budget airline at £1.3bn.

The new offer by British Airways' parent company, which comes hot on the heels of two earlier failed bids, is worth NOK 330 per share, roughly £30.30, according to Spanish business daily Expansion, marking a 32% premium to Norwegian's closing price on Friday.

Back in April, BA acquired a 4.6% stake in the rapidly growing budget airline, which has seen great success with its low-cost fares on long-haul routes.

While Norwegian has seen increased passenger levels, the Scandinavian carrier fell into a loss last year as a result of the hotly discounted fares.

As reported by Expansion, analysts at Sparebank said IAG should not cough up more than NOK 300 per share, while their peers at HSBC were reportedly bandying about a hypothetical target of between NOK 250 and 300.

IAG did not immediately respond to requests for comment.

Willie Walsh, IAG's chief executive, dumbed down his level of interest in taking over Norwegian, stating "this isn't a deal I have to do" and that IAG had no interest in launching a hostile bid.

"If we do something, we are responsible and would make the required announcements, but I am not expecting to have to do anything in the coming weeks or months," Walsh said.

As of 1550 BST, IAG shares had picked up 1.55% to 693.20p.