Aer Lingus shares gain on talk of increased bid of up to EUR 2.60 per share from IAG
Aer Lingus’ share price gained yesterday, 2 January on talk that International Consolidated Airlines Group (IAG) had increased its takeover offer for the listed Irish airline, The Irish Independent reported. The newspaper mentioned talk that IAG may have told Aer Lingus that it is now willing to offer between EUR 2.40 (USD 2.88) per share and EUR 2.60 per share, but did not cite a source for the speculation.
It is understood that IAG’s initial bid approach for Aer Lingus, prior to Christmas, involved an EUR 2.20 per share indicative bid, the item said. The Aer Lingus board rejected the offer, the article added.
IAG refused to comment yesterday evening, the item said.
The Irish government holds a 25.1% stake in Aer Lingus and would be looking for an offer higher than EUR 2.20 per share in the event that it thinks about selling the stake, the report added.
Ryanair, a listed Irish budget airline, holds a stake just short of 30% in Aer Lingus, while the Abu Dhabi-based airline Etihad holds a stake of slightly less than 5%, the article noted.
Aer Lingus share price gained more than 3% inside of an hour after the close of stock market trading in Dublin yesterday, according to the report. Aer Lingus shares closed EUR 0.089 up at EUR 2.295, giving the airline a market capitalisation of EUR 1.22bn.
Irish Independent