Vueling board recommends shareholders reject IAG offer

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International Airlines Group is reflecting on an announcement by Vueling's board recommending investors reject the former's offer for the company.

IAG, parent of British Airways and Iberia, already owns nearly 46% stake in Vueling and launched a takeover offer for the remainder of the Barcelona-based carrier at the end of last year. The IAG offer of €7 per share offer values the 54.15% shareholding it does not own in Vueling at €113 million ($148 million).

Vueling's board though has now issued a statement to the Spanish stock exchange saying the offer undervalues the airline. "We will reflect on Vueling's announcement and provide an update in due course," IAG says.