IAG to sell Norwegian Air stake

British Airways owner IAG has pulled out of the race to buy budget long-haul carrier Norwegian Air Shuttle.

The Anglo-Iberian giant confirmed on Thursday that it "does not intend to make an offer for Norwegian".

The FTSE 100 group added that it will sell its 3.93% stake in Norwegian in due course. The stake has previously been as much as 4.6%.

Willie Walsh, chief executive of the BA and Iberia owner, said last August that the company remained interested in the low-cost, long-haul carrier after two failed approaches earlier in year.

Walsh had earlier said IAG does not need to do a deal and that he did not want to lodge a hostile bid.