british airways

IAG, the company resulting from the merger of British Airways and Iberia, improved its initial offer from €7 per share to €9.25 to buy 100% of the Catalan airline’s shares. Iberia already owned 45.85% of Vueling and the IAG offer aimed to buy the remaining 54.15%. However, IAG had already stated the operation would still be carried out if it could buy 4.16% of Vueling’s share, in order to own 50.01% of the airline. Finally, more than four fifths of the remaining shareholders decided to sell their stocks to IAG. The international airline will buy 44.66% of Vueling’s shares and then it will own 90.51% of the company based in Barcelona El Prat Airport. Vueling is one of the few European airlines that has made a profit in the last few years. It has a competitive business model, flying to more than 200 destinations.

IAG, the merger between British Airways and Iberia, improved its offer on Vueling’s shares, increasing from a price of €7 per share to €9.25. The board of the Barcelona-based airline considers the new conditions to be “reasonable” and have decided to recommend that the shareholders accept the offer. In fact, some Board members, such as Vueling’s President Josep Piqué have announced that they will sell their shares to IAG. Iberia already controls 45.85% of Vueling and IAG’s aim is to completely control the Catalan airline. Therefore, the takeover is on the condition that they are able to acquire at least 4.16% of Vueling’s shares, which would mean that IAG would control at least 50.01% of the Barcelona-based airline. The deadline to accept the offer expires on the 19th of April.

IAG, the airline formed after the merger of British Airways and Iberia, has improved its offer for the total takeover of Barcelona-based Vueling, one of the few airlines in Europe which has earned a profit in the last few years. Earlier this month, Vueling’s board rejected IAG’s offer, presented in November, as they considered it to be too low. Now, the shareholders have had the last word. IAG already controls 45.85% of Vueling. With the new offer, if IAG manages to control 50.01% of Vueling – despite it officially aiming to get 100% of the Catalan airline shares – the operation will go ahead.

The Board of Directors of the Catalan airline Vueling has rejected the offer of 7 euros per share made by IAG, the group which resulted from the merger of British Airways and Iberia. Vueling’s Board considered the price to be too low. IAG’s takeover was offering a 27.97% bonus in November, but Vueling’s shares have significantly increased their value since then and IAG has not improved its offer. The Catalan company is one of the few European airlines to turn a profit over these last few years. Now Vueling shareholders will have the last word on the decision as to whether they accept IAG’s offer.

Vueling earned a net profit of €28.3 million in 2012, almost three times more than the €10.3 million of 2011. It transported 14.8 million passengers, 20.1% more than in the previous year, with an occupancy rate of 77.7%. The Barcelona-based airline continues with its international expansion, especially in Western Europe, and it has become the third largest airline in Paris-Orly and Roma-Fiumicino. It also increased the passenger traffic share it controls in Barcelona El Prat Airport by up to 30%. The total revenue reached €1.103 billion last year, 27.7% more than in 2011. Vueling occupied part of the market share left by Spanair in Barcelona. Besides. the Spanish Stock Market Authority has authorised IAG’s take-over operation of Vueling, aiming to take total control of the Catalan company.

IAG, the airlines group formed after the merger of British Airways and Iberia, has announced its plans to acquire 100% of Vueling’s capital. Iberia already has 45.85% of the Catalan airline. Now, IAG intends to buy the remaining 54.15%, equivalent to 16.2 million shares. IAG is offering €7 per share, 28% more than Vueling’s last trading price on the stock exchange market. Vueling is one of the few airlines in Europe making a profit. Catalan politicians are “worried” about the purchase, as Vueling is based in Barcelona El Prat Airport and is committed to its expansion. However, Iberia abandoned its plans to develop El Prat and has prioritised Madrid Barajas. A Catalan MEP has asked the European Commission about the possibility of there being a free competition obstacle.

Passengers that catch a cruise after arriving in Barcelona by plane can check-in at the airport until November 6th. At the same time, travellers who arrive by cruise and then catch a flight can check-in at the harbour terminal. More than 47,000 passengers used these services last year.