Aer Lingus recommends EUR 2.50-per-share IAG offer to shareholders
Aer Lingus has recommended the Anglo-Spanish airline operator International Consolidated Airline Group (IAG)’s latest EUR 2.50-per-share offer to investors in the Irish carrier, The Sunday Times reported. The unsourced report said IAG’s third bid in recent weeks persuaded the board of Aer Lingus to start formal discussions, leading to the recommendation of the EUR-1.3bn deal.
The situation is thought likely to be announced tomorrow, Monday 26 January, the report said.
The biggest obstacle to a deal may be securing the support of the Irish government, which owns a 25% stake in Aer Lingus, the item stated. It said IAG, which owns British Airways, may try and smooth any government concerns with promises to preserve Aer Lingus routes between Dublin and London Heathrow, while redirecting some Irish BA flights out of Heathrow to more profitable long-haul journeys.
A 29.8% stake in Aer Lingus is owned by rival Irish airline Ryanair, which has previously attempted to acquire Aer Lingus three times. Ryanair chief executive Michael O’Leary was quoted in a separate Sunday Times report signalling that a new offer has not been ruled out. IAG has not offered to acquire Ryanair’s holding this time and rejected an offer to buy it a couple of years ago, he told the newspaper.
Sunday Times