Revised IAG bid for Vueling approved by regulator

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Spain's National Securities Market Commission (CNMV) has approved a revised takeover bid for Vueling by International Airlines Group (IAG).

London-based IAG is now offering to pay €9.25 ($11.86) per share for the 54.15% shareholding in Vueling that it does not already own. The minimum acceptance level is 4.16% of total capital.

The revised offer marks a 32% increase on IAG's original November 2012 bid of €7 per share, which was rejected by Vueling's board following objections by shareholders.

At the time of the original bid, IAG's €113.3 million valuation on the outstanding stake in Vueling represented a 28% premium on its free market value. But the €7 level was swiftly breached by traders in late November, and the share price has continued rising this year.

On 4 April 2013 - the day that the CNMV approved IAG's revised offer - IBEX-listed Vueling was trading in the range of €9.21-9.34.

Vueling shareholders now have until 19 April to consider the revised offer, following the CNMV's decision to extend the offer acceptance period by nine days.