British Airways Parent IAG Wins Vueling Backing for Takeover Bid
Vueling’s directors recommend that investors accept a “reasonable” bid of 9.25 euros a share issued on March 27, the Barcelona-based company said today in a statement. The board had rejected an earlier approach valued at 7 euros a share.
IAG Chief Executive Officer Willie Walsh is seeking control of profitable Vueling after the London-based group’s Spanish Iberia unit pushed it to a 23 million-euro ($30 million) loss in 2012. Vueling, in which IAG already owns a 45.85 percent stake, would remain a standalone unit within Europe’s No. 3 airline.
“Greater integration of Vueling into IAG should provide advantages and opportunities of interest for the company,” Vueling said in its stock market filing.
IAG, as London-based International Consolidated Airlines Group SA is known, is seeking a minimum 4.16 percent more stock to gain at least a 50.01 percent holding, down from the earlier 90 percent. The bid values Vueling at 277 million euros.
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