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.
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