Takeover bid by British Airways owner rejected

Low-cost carrier Norwegian Air Shuttle (NAS) has knocked back two takeover offers from British Airways owner International Airlines Group (IAG).

The group said IAG’s approaches “undervalued” NAS and its prospects.

The move came as IAG reported a sharp increase in first quarter profits.

Shares in the airline group moved strongly ahead in early trading as IAG revealed a 75% rise to £247 million in operating profits for the three months to March 31.

The first quarter is traditionally the weakest of the year for airlines.

But service improvements and an early Easter helped boost trade with revenues 2.1% ahead at £4.4 billion.