Deals
Norwegian Air Gets Lifeline With Help From Norway's Richest
- Shipping magnate Fredriksen part of $353 million rights issue
- Discounter open to bids after IAG abandons months-long pursuit
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Norwegian Air Shuttle ASA gained the backing of Norway’s richest man, providing some stability to the struggling discount carrier as it searches for a new suitor following IAG SA’s decision to abandon its eight-month pursuit.
The shares fell the most on record after Norwegian said Tuesday it’s raising 3 billion kroner ($353 million) in a rights issue underwritten by investors including shipping magnate John Fredriksen to avoid breaching financial covenants. While the stock declined, the bonds advanced as investors welcomed the cash infusion, which eases concerns over Norwegian’s viability.