Originally Posted by
tigertanaka
The size of the Norwegian Sovereign Oil fund is irrelevant, they cannot cash it in tomorrow and it is not comparable to the size of the UK economy.
They can do what they like with it including cashing it in were they to choose.
Its size is very relevant because they can invest when and where they like and have already invested in Norwegian.
As for its size ................ being 40% of the size of UK economy is big, considering Norwegian whole economy is only 16% of its size.
Who is to say that the find would actually want to invest in Norwegian? Throwing money around to support struggling companies is not something that investment funds do unless they can see a financial return, a proper business plan and a management team that can pull it off. I don't remember many political investments by the Norwegian Oil fund but I maybe wrong.
Well they already have which blows that theory out the window.
Companies in high growth phases are not cash cows, they require huse levels of investment to invest for growth.
On the other hand, IAG can see clear synergies, it has a track record of running a financially successful airline and can also offer Kros an exit with the promise that the brand he has established will be preserved within the IAG stable.
IAG see getting Norwegian off the TA market and screwing their yields as the win here.
BA has a history of being involved in practices like this.................. Laker and Virgin spring easily to mind.