Iberia to withdraw its bid for SAS unit, Spanair

According to Iberia Chairman, Fernando Conte, the carrier had been affected by rises in fuel prices and slowdown in European economic growth, resulting in the acquisition being less affordable now than when its board first approved the bid earlier this year. Shortly after, SAS announced it would reconsider plans to sell Spanair if it was unable to complete a sale before the end of Jun-08. Gadair European Airlines meanwhile stated it remained interested in acquiring Spanair.

Iberia: "The truth is the clock is ticking. The environment is changing. We have to consider what is the future of our offer within this new market environment," Chairman, Fernando Conte. Reuters, 29-May-08.

SAS: “If SAS does not reach a satisfactory solution regarding the divestment, SAS will abandon the current sales process and continue as a shareholder committed to ensure a profitable Spanair," Company Statement. Source: Reuters, 29-May-08.
 

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