Norwegian Air shares crash as IAG set to sell stake

IAG, which owns Aer Lingus and British Airways, abandoned an eight-month pursuit of Norwegian Air Shuttle, leaving the indebted airline reeling as it faces a cash crunch during the slow winter season.

IAG “does not intend” to make a further bid and will be selling a 3.9% stake in due course, it said. Norwegian shares slumped as much as 26%, the most ever, while IAG reversed earlier declines to trade higher.