LONDON, March 8 International Airlines Group
said it was considering its options over its proposed
takeover of Vueling after the Spanish budget airline
recommended shareholders reject IAG's offer.
The board of Vueling said on Thursday that IAG's 7 euros per
share bid did not reflect the airline's true value.
"We will reflect on Vueling's announcement and provide an
update in due course," an IAG spokeswoman said on Friday.
IAG, which already owns 45.85 percent of Vueling as well as
British Airways and Iberia, offered in November to buy the rest
of Barcelona-based Vueling in a bid to stem its losses in Spain
and shake up its short-haul business in the country.
The offer represented a 28 percent premium at the time, but
the share price of Vueling has since soared as the low-cost
carrier's market share in Spain has grown and it posted a 300
percent jump in 2012 net profit.
Shares in Vueling, Spain's second largest carrier by
passenger numbers, were up 4.3 percent at 8.19 euros by 1010
GMT, valuing the group at around 245 million euros ($320.5
IAG's shares were 0.8 percent up at 243.4 pence.
IAG said last month it had ruled out raising its bid for
Vueling, although it could waive the initial condition it set of
a minimum acceptance of 90 percent of non-IAG shareholders.
Vueling shareholders have until April 8 to say whether they
will accept the offer.