Bloomberg News

British Airways Parent Starts Vueling Offer With Filing in Spain

December 10, 2012

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.

To contact the reporter on this story: Robert Wall in London at rwall6@bloomberg.net

To contact the editor responsible for this story: Benedikt Kammel at bkammel@bloomberg.net


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