Vueling, the Barcelona-headquartered budget airline that IAG wants to take full control of, saw shares surge in Madrid on Wednesday after the British Airways and Iberia owner raised its bid for the firm.
The news came just hours after IAG announced the resignation of Iberia's Chief Executive Officer Rafael Snchez-Lozano.
Shares in IBEX-listed Vueling were up 8.84% at €9.23 before the close (following an earlier suspension) after IAG upped its original €7.0-a-share bid to €9.25 a share, an increase of 32%. IAG already has a 45.85% stake in Vueling.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The new proposal, which has extended the offer acceptance period, values the whole of Vueling at €277m.
Vueling is thought to be key to IAG's restructuring plans in Spain as struggles with its loss-making Iberia unit pressured to group to a €23m loss in 2012.
-
Barclays begins paying up to £100 compensation to customers after banking outageBarclays will pay up to £7.5 million in compensation to customers after its banking services were disrupted by an IT outage
-
Review: Shangri-La Paris – an ode to the world’s best foodNatasha Langan enjoys fine French and Chinese cuisine at the Shangri-La Paris
