International Consolidated Airlines Group PLC (LON:IAG) could face a tough battle if it were to bid for Norwegian Air Shuttle after the boss of Deutsche Lufthansa said the German airline was interested in making a bid for the low-cost airline.
In an interview, Lufthansa’s CEO Carsten Spohr told German newspaper Suddeutsche Zeitung: "In Europe, everyone is talking to everyone. There's a new wave of consolidation approaching. That means we are also in contact with Norwegian."
READ: IAG reportedly plans to offer €1.52bn for Norwegian Air Shuttle
He added: "Takeovers are always a question of strategic value, the price and anti-trust. There are no easy answers."
IAG - the owner of British Airways, Iberia and Aer Lingus - bought a 4.6% stake in Norwegian in April and has made two offers for the airline, both of which were rejected.
Sky News reported that a spokesperson for Norwegian said: "Norwegian confirms that it has received enquiries from several parties following IAG’s acquisition of shares in the company.
“These parties have expressed indicative and preliminary interest in share acquisitions, mergers, structured transactions, financing of the group and various forms of operational and financial cooperation,” the spokesman said.
“Norwegian believes that interest from several parties demonstrates the attractiveness of our business,” he added.
Norwegian carries more than 30mln passengers a year, including 5.2mln from the UK following a rapid expansion with flights costing as little as £99 one-way to New York.