Chris Hughes, Columnist

Norwegian Air Shuttle Hands Around the Sick Bags

IAG would have to pay a jumbo-sized premium to win over the target’s board.

May 21, 2018 at 12:55 PM UTC

Chris Hughes is a Bloomberg Opinion columnist covering deals. Previously, he worked for Reuters Breakingviews, the Financial Times and the Independent newspaper.

Drop in the share price reflects reality about a deal.
Photographer: Simon Dawson/Bloomberg

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Willie Walsh has had shareholders in Norwegian Air Shuttle ASA reaching for the sick bags. The IAG CEO has sowed doubt about his commitment to buying the long-haul, low-cost carrier after taking a 5 percent stake last month, telling Reuters on Friday he was in no hurry for a deal and saying a hostile bid wasn't his style. He would say that, wouldn't he?

Ruling out a hostile offer removes some tension from the situation: Norwegian shares fell 7 percent on Friday. But it merely reflects reality. Norwegian's chairman Bjorn Kise and CEO Bjorn Kjos control a 26 percent block of the shares. The two are going to be central to a deal.