International Airlines Group (IAG) will not increase its initial 7.0 euros-per-share offer for Spanish low-cost airline Vueling, Expansion reports.
The announcement follows a report by another Spanish newspaper, which said that the airline intended to boost its offer to €7.50-8.00 per share.
According to analysts at Ahorro Corporacion Financiera, the new price would ease tension among shareholders because it would be closer to an equitable price considering the airline has a book value of €8.08 per share.
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Regardless, the same analysts pointed out that IAG is governed exclusively by the rules applicable to voluntary offers, in which case the offerer is not required to offer an equitable price.
MG
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