Lufthansa Also Eyeing At Norwegian

Lufthansa CEO made some noise today on an interview published on German newspaper when he noted that the airline was having a look at potentially acquiring Norwegian.

Norwegian

IAG, parent of airlines such as British Airways and Iberia, acquired stake in Norwegian but seems that parties couldn’t agree about the price of buying all the shares.

Here’s an excerpt from Bloomberg (access their piece here):

Norwegian Air Shuttle ASA surged as much as 12 percent after Deutsche Lufthansa AG Chief Executive Officer Carsten Spohr said his company was in takeover discussions with the Scandinavian discount specialist, raising the possibility of a bidding war.

Lufthansa has been in contact with Norwegian and whether an agreement is reached will depend on the price on offer and the strategic value the purchase would add for the German carrier, Spohr said in an interview with Süddeutsche Zeitung. Potential restrictions by cartel authorities will also be a factor, he added.

And here’s from Reuters (access their piece here):

Norwegian reiterated on Monday that it had been approached by potential buyers and investors following an announcement in April that IAG (ICAG.L) had taken a 4.6-percent stake in the carrier.

It’s Chief Executive Bjoern Kjos confirmed to Norwegian public broadcaster NRK later on Monday that Lufthansa has been in touch with Norwegian Air’s advisors, and he had personally exchanged text messages with Lufthansa’s boss.

Norwegian Air’s shares closed in Oslo 10 percent higher at 274 crowns. Lufthansa shares were down 1 percent, slightly outperforming a 1.3 percent weaker DAX .GDAXI index in Germany.

Conclusion

There are several parties that could be interested in acquiring the Norwegian Air Shuttle. Not sure if these parties are interested in the airlines’ extensive European network (especially within Nordic countries) at all or only the long-haul one.

Kjos, founder of the Norwegian, seems to talking to everyone as he should. I guess that he is willing to offload his share if and when the price is right.

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