Board says deeper integration offers advantages
The board of the Barcelona-based low-cost airline Vueling has unanimously recommended to shareholders to accept an upgraded takeover offer of €9.25 per share from IAG, Reuters reports. IAG already owns 45.85% of Vueling as well as Iberia and British Airways. Last month it raised its bid substantially after Vueling rejected a previous offer of €7 per share.
“The board of Vueling recommends shareholders to accept the improved offer for the following reasons: the price is reasonable and within the valuation issued by experts and from a strategic point of view the deeper integration of Vueling in IAG will offer advantages and opportunities,” the carrier said in a statement.
IAG is trying to downsize Iberia by more than 3000 employees and cut salaries there. Reuters says it may use Vueling to “boost its short-haul business and compete with cheaper operators”.
[photo courtesy Vueling]