International Consolidated Airlines Group SA (IAG) began the process of seeking to buy 100 percent of low- cost carrier Vueling Airlines SA (VLG) by seeking authorization for a tender offer from Spain’s National Securities Market Commission.
IAG, the parent of British Airways and Spain’s Iberia, plans to acquire the 16.2 million shares of Barcelona-based Vueling -- equal to 54.14 percent of the total -- that it doesn’t already own, it said today in a statement.
Banco Santander SA (SAN) has agreed to guarantee 113.4 million euros ($147 million) to cover the cost of the transaction, or 7 euros per share targeted, London-based IAG said.
Taking full ownership of Vueling may help IAG cut costs in Spain after it began an overhaul of Iberia that includes the foundation of a low-cost unit there. The company may face opposition to the takeover plan, first disclosed on Nov. 8, from shareholders who have said the offer price is too low.
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