Norwegian Air Rebuffs Takeover Bid by British Airways Parent

Budget carrier rejects IAG’s two conditional offers

LONDON—Norwegian Air Shuttle ASA has rebuffed a takeover bid by British Airways parent IAG, as the battle for the lucrative trans-Atlantic market intensifies.

International Consolidated Airlines Group, as IAG is formally known, said Friday it had made a takeover offer, after disclosing in April a 4.61% stake in the Scandinavian budget carrier, which at the time was valued at around $41 million.

“We...