Last Thursday, May 16, Spanish financial newspaper, Expansión, reported that ailing Scandinavian airline Norwegian Air Shuttle could be the subject of takeover interest. This caused the stock to rise by around a third, as investors marched into the situation. However, it could very well be the case that they are forced to march out rather quickly.
According to sources familiar with the situation, on Friday talks with the Scandinavian company ended abruptly. A would-be bidder described as the “enfant terrible” of the stock market, and a large trader as defined by the SEC, walked out of negotiations.
Clearly, despite being in a delicate financial situation, exacerbated by the Boeing 737 MAX debacle, Norwegian has apparently failed to secure its position on this occasion, presumably due to an overly optimistic view of its valuation. The stock recently fell to multi-year lows. Without the oxygen of takeover talks, the risk is that it will again.
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