(The author is a Reuters Breakingviews columnist. The opinions expressed are their own.)

LONDON - John Menzies is channelling Icarus. The 420 million pound UK air services group has turned down two offers from National Aviation Services (NAS), part of $7.5 billion Kuwait-listed group Agility Public Warehousing. The latest 510 pence per share one represents a 76% premium to its Feb. 2 price.

With the pandemic receding, Menzies can play hardball. Eight similar deals over the last decade were struck at an average 9.8 times EBITDA, against the 6.4 times implied by NAS’s offer. Put Menzies’ 102 million pounds of EBITDA on the same multiple and it would be worth double the 470 million pounds on offer – and even more if Menzies’ growth plans pan out. NAS’s Kuwaiti state backers also have deep pockets.

Still, the health of the airline sector remains uncertain, making scale desirable. NAS has until March 9 to submit a formal offer, but Menzies’ 458 pence share price doesn’t suggest investors anticipate another raise. If NAS walks away, Menzies could be left with a 300 pence share price, and some peeved shareholders. (By George Hay)

(The author is a Reuters Breakingviews columnist. The opinions expressed are their own.)

(Editing by Ed Cropley and Oliver Taslic) ((SIGN UP FOR BREAKINGVIEWS EMAIL ALERTS: https://bit.ly/BVsubscribe))