International Con Airlines acquires a further stake in Vueling

International Consolidated Airlines Group (IAG) said Tuesday that it has increased its stake in Vueling, the Spanish low cost carrier based in Barcelona, to 90.51 per cent after its shareholders accepted the recommendation of the Vueling board.

International Consolidated Airlines Group (IAG) said Tuesday that it has increased its stake in Vueling, the Spanish low cost carrier based in Barcelona, to 90.51 per cent after its shareholders accepted the recommendation of the Vueling board.

IAG's subsidiary Iberia already owns 45.85% of Vueling's shares and Iberia's board agreed not to tender them in the offer. The Spanish National Securities Market Commission (CNMV) announced that 82.48% of the remaining shareholders have accepted IAG's offer of €9.25 per share.

Altogether the acquisition cost €123.5m, and is expected to be completed on April 26th 2013.

Willie Walsh, IAG Chief Executive, said: "Vueling is a great airline and will be a welcome addition to IAG where it will benefit from the group's financial strength. We plan to retain Vueling's current business model and management structure and its strong base in Barcelona."

Vueling will be a standalone company within IAG with its chief executive Alex Cruz reporting into IAG Chief Executive Willie Walsh.

The share price rose 3.43% to 265.20p by 12:55 on Tuesday.

NR

Recommended

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework
Investment strategy

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework

John Stepek talks to Steve Clapham, investor, analyst and author of The Smart Money Method, about the dangers in picking individual stocks and why you…
8 Apr 2021
BP looks set to return more money to shareholders as it beats expectations
Energy stocks

BP looks set to return more money to shareholders as it beats expectations

Oil major BP is to embark on a share buyback programme after significantly reducing its debts. Saloni Sardana looks at what it means for your portfoli…
6 Apr 2021
Deliveroo has hit the market – but it’s not getting the warmest welcome
UK stockmarkets

Deliveroo has hit the market – but it’s not getting the warmest welcome

Food delivery company Deliveroo made its debut on the stockmarket this morning. But with the share price sliding by 30% straight away, it’s not made t…
31 Mar 2021
Three stocks to buy now that will come back stronger after Covid-19
Share tips

Three stocks to buy now that will come back stronger after Covid-19

Professional investor Ed Wielechowski of Odyssean Capital, chooses three compelling stocks that should thrive in a post-pandemic world.
29 Mar 2021

Most Popular

“Joke” cryptocurrency dogecoin goes to the moon. What’s going on?
Bitcoin

“Joke” cryptocurrency dogecoin goes to the moon. What’s going on?

Dogecoin – a cryptocurrency created as a joke – has risen by more than 9,000% this year alone. Saloni Sardana looks at how something that began as an …
19 Apr 2021
China owns a lot more gold than it’s letting on – and here’s why
Gold

China owns a lot more gold than it’s letting on – and here’s why

In a world awash with money-printing, a currency backed by gold would have great credibility. And China – with designs on the yuan becoming the world’…
21 Apr 2021
Why investment advice could be about to get a lot cheaper
Investment strategy

Why investment advice could be about to get a lot cheaper

Vanguard, the world’s second-biggest asset manager, is launching its own cut-price financial advice service. It’s something the industry badly needs, …
20 Apr 2021