BA Parent Denies Rumors of Finnair Takeover Talks

An Airbus A321-211 of Finnair lands at Amsterdam Airport (photo: istock)

Despite media reports to the contrary, International Airline Group says that the British Airways owner is not in negotiations to acquire Finnair.

British Airways parent company, International Airline Group (IAG), is building an impressive roll call of airlines in its portfolio. In addition to British Airways, the multinational conglomerate owns significant interest in Aer Lingus, Iberia and Vueling Airlines.

However, company officials told Reuters that they are not actively seeking to add government-owned Finnair to IAG’s growing list of corporate holdings. “We haven’t been in any discussions with Finnair,” a company spokesperson insisted on Thursday.

In a statement, Finnair likewise denied rumors of a takeover bid, saying, “Finnair is not active, and is not aware of its shareholders being active, in any such negotiations.”

Speculation that the IAG was in negotiations to acquire a substantial stake in the flag carrier of Finland was fueled by a media report in a Finnish newspaper, citing unnamed sources at IAG who claimed a new partnership could be announced in a matter of days. Finnair stock surged briefly following the report that takeover talks were processing rapidly. Officials at both IAG and Finnair moved quickly to tamp down rumors of an impending partnership.

The firm denial that Finnair and IAG are involved in takeover talks marks the second time this week that a company was put in the position of denying rumors it was actively negotiating to merge with IAG. South America-based LATAM Airline Group released a statement on Tuesday denying reports of a potential acquisition, saying in part, “In regards to recent media reports, LATAM Airlines Group clarifies that it is not in discussions with International Airlines Group (IAG) about the possibility of their joining LATAM Airlines Group.”

[Photo: Getty]