International Airlines Group has upped its takeover offer for Spanish carrier Vueling to €9.25 ($11.90) per share after an original bid of €7.00 per share was rejected by Vueling’s management.
Late last year, IAG announced it was planning to offer €7.00 per share to acquire the remaining 54.15% of Vueling not already owned by its subsidiary Iberia, which holds a 45.85% stake.
Back in November this offer represented a 27% premium on Vueling’s share price. However, by March the share value had risen to €7.85 so Vueling’s management advised its shareholders to reject the offer.
IAG on Wednesday came back with a fresh offer of €9.25 ($11.90) per share, saying: “[Takeover vehicle] Veloz Holdco will submit the documentation relating to the amended offer with the Spanish National Securities Markets Commission (CNMV) for its authorization on or before 3 April 2013.”
It has also extended the acceptance period from 39 to 48 days and reduced the minimum acceptance conditions from 90% of the Vueling voting rights not owned by Iberia to 1,244,029 Vueling shares, or 4.16% of Vueling’s share capital.
The original IAG offer valued Vueling at €209 million.