“IAG authenticates that no such discussions have taken place to date, that it has bewitched no decision to make an offer at this time and that there is no fact that any such decision will be made,” IAG said in its statement.
Norwegian’s divisions, temporarily halted after the IAG news, leaped 39 percent to 250 kings when they resumed trading, valuing the company at 9.5 billion Norwegian rulers ($1.22 billion).
IAG, formed in 2011 by the merger of traditional flag-carriers British Airways and Iberia, has call of CEO Willie Walsh recently embraced budget flying, buying Spanish budget airline Vueling in 2015 and site up its own long-haul low-cost carrier last year.
Norwegian meanwhile has been the trailblazer of low-cost long-haul expiring in Europe, undercutting rivals on trans-Atlantic ticket prices, but expanding at a measure which has left it under pressure to control costs and shore up its equal sheet.
Last month it raised $168 million in a share yard sale after warning of a larger than expected first-quarter loss.
Norwegian denoted in its statement on Thursday that it had no prior knowledge of IAG’s actions, but welcomed the investment.
“Norwegian believes that IAG’s piece in the company confirms the sustainability and potential of our business model and global increase,” it said.
Shares in IAG initially dropped 3.4 percent on the news preceding recovering to trade flat at 615 pence.
IAG’s announcement is the latest unusual of interest in a new round of consolidation among airlines.
Germany’s Lufthansa and easyJet expressed absorb in Italy’s struggling Alitalia this week.
Ryanair last month consented to buy a majority stake in a new Austrian leisure airline founded by Formula One departed champion Niki Lauda.