TheChek News Flow

Bjorn Kjos, the co-founder and CEO of Norwegian Air Shuttle [OSLO:NAS], which is being targeted by International Airlines Group [LON:IAG], has not thought of selling, according to newswire reports.

A day after IAG declared a 4.61% stake in Norwegian Air and its intention to initiate discussions, Kos told reporters that the Oslo-based carrier has 'no interest' in a sale and that he has not been in contact with the potential bidder, Bloomberg reported. A Reuters report quoted Kos as telling reporters that he has not considered selling 'at all'.

Norwegian Air shares in trading on Friday afternoon were up 2% at NOK 269 apiece, corresponding to a market cap of NOK 10.45bn (EUR 1.09bn, GBP 946.3m).

Link to original source (Bloomberg)

Link to original source (Reuters)

A merger between Renault [EPA:RNO] and Nissan [TYO:7201] is not seen to be imminent, said two sources briefed on the matter.

A combination makes business sense for both companies, one of the sources said, but recent press reports on the deal are “exaggerated” and contain “more rumours than truth”. The second source said that those reports diminished the chance of a deal in the near future, perhaps “for a few years”, given the public reaction.

Discussions on a merger have been held on and off for years, the sources said. Banks are now pitching for mandates for a potential deal, said a banker familiar with the state, who has worked on French privatisations in the past. The first source added that no formal mandates have yet been awarded.

On 7 March, Reuters reported that a merger was on the horizon, with Nissan in talks to buy the French state’s 15.1% stake in Renault as an opening move. Bloomberg reported on 29 March that Nissan and Renault were in merger talks. Renault already holds a 43.4% stake in Nissan, and Nissan holds 15% of Renault.

In the long run, France’s stake in Renault is the biggest obstacle to a deal, the first source said. A resolution of the French government’s concerns about its remaining stake in Renault “could take a year” before a formal process starts, the first source said.

On a merger between the automotive giants, the French government is likely concerned about the potential for job losses in France and the risk that a merger might affect Renault’s supply of vehicles to France’s military and public transport systems, said DLA Piper’s Noam Ankri, an independent M&A lawyer.

To address these concerns, the merging parties could allow France a “golden share” to give it a say on a number of strategic matters after the deal, Ankri said. As well, the merged entity could have its holding company in neutral territory or perhaps retain two headquarters, the first source and Ankri said.

Renault and Nissan could reach a deal “quickly” once the question of French state ownership is resolved, the first source added.

A spokesperson for the French economy ministry told this news service that the government is reviewing its options for Renault. The government sold a 4.73% stake in Renault last year and, in January, announced plans to privatise a number of companies.

Renault declined to comment. Nissan did not respond to requests for comment.

Hammerson [LON:HMSO] shareholders would be open to an offer from Klépierre [EPA:LI] well below its net-asset value (NAV), said three minority shareholders in the UK real-estate group.

Two of the shareholders said they were ready to support Klépierre's latest revised approach.

On 19 March, Klépierre announced a 615p/share possible offer for Hammerson comprising an even split of cash and shares. On 11 April, Klépierre revised its bid to 635p/share, which was also rejected by Hammerson. Hammerson is declining to engage with the bidder and has already made an offer for Intu Properties [LON:INTU], which would have to be abandoned under any deal with Klépierre.

Hammerson has spoken with its shareholders on the situation and has found support for its refusal to countenance an offer at 635p/share, with its net-asset value at 790p/share, it was said.

Although two minority shareholders told this news service that they support the latest bid as it stands, J O Hambro – which holds 1.4% of Hammerson – issued an internal bulletin calling for an offer “towards the 700p/share level”.

J O Hambro would settle below NAV, as “our test is where the share price could credibly move to on a two- to three-year timeline”. Hammerson shares are “unlikely to ever trade” at NAV, J O Hambro said.

Two other minority shareholders were more eager to accept the current offer. The 635p/share offer is opportunistic but worth taking, one them said. An even cash-and-shares split is fine, as equity is the easiest way for Klépierre to pay fair value, this shareholder, who also holds a small stake in Klépierre, said.

This shareholder said he would have even taken the 615p/share offer. The offer is preferable to Hammerson’s proposed takeover of Intu as Intu is exposed to a different segment of the UK commercial real-estate market, he explained.

A fourth minority shareholder said that Hammerson’s stated plan to sell off parts of Intu’s property portfolio “may create a drag on return through time should the deal progress”.

The second minority shareholder said that he was on the fence at 615p/share before the price hike clinched it for him. Even at 635p/share, Klépierre’s offer is a steep discount to Hammerson’s NAV, he said, but it represents a high enough premium over its undisturbed share price that he is willing to take it.

Klépierre and Hammerson declined to comment. Intu did not respond for comment.