Hitt og þetta 27. september 2006

Icelandair Group in discussions regarding sale

Nordic Business Report-September 27, 2006-Icelandair Group in discussions regarding sale
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Discussions have taken place regarding the possible sale of a stake in Icelandair Group, or the company as a whole, FL Group's chief executive Hannes Smarason confirmed to Icelandic Financial News (IFN) on Wednesday (27 September).

Icelandic media had earlier reported that several banks were interested in acquiring Icelandair Group.

Icelandair previously announced that the company intended to go ahead with its planned initial public offering (IPO) in the autumn. Icelandic investment company FL Group owns Icelandair, as well as Danish budget airline Sterling Airlines.

Smarason said the discussions were in accordance with the company's previous statements, which said it was willing to look into that possibility.

Smarason declined to name which parties were involved or how many.

Iceland's Glitnir bank values Icelandair at ISK44-48bn (EUR497-541m). Market analysts say that selling Icelandair as a whole may be more profitable for FL Group, rather than an IPO.

One Icelandic krona (ISK) is worth approximately 0.008 British pounds (GBP).

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