logo-loader
viewAER Lingus Group plc

Aer Lingus receives third bid from BA owner

rsz_british_airways_54c5f1ed2b950.jpg

British Airways owner IAG (LON:IAG) has made a third approach for Irish carrier Aer Lingus (LON:AERL).

IAG, which also owns Spanish airline Iberia, has pitched its latest offer at €2.55 per share – valuing the airline at €1.34bn (£1bn).

The improved bid follows the rejection of two earlier offers of €2.30 and €2.40 a share.

Success of the latest approach is likely to depend on whether Willie Walsh, IAG’s chief executive, can persuade the Irish government to support the deal.

The Irish state owns 25.1% and Paschal Donohoe, the transport minister, is expected to brief the cabinet on any takeover proposal on Tuesday.

He has reportedly warned that the value of the government stake — about €325mln based on IAG’s latest offer — was not the only issue that would be considered.

“I and the government will take huge care in evaluating any proposal that comes in,” he told state broadcaster RTE on Sunday.

IAG is said to be eyeing Aer Lingus’s slots at Heathrow as the Dublin-based carrier is the third biggest airline at the airport.

It is thought that the deal may be blocked by the government if it does not include guarantees that Aer Lingus will continue to use its slots at London’s Heathrow airport to fly to and from Ireland.

Ryanair (LON:RYA), which owns close to 30% of Aer Lingus, has indicated that it would be prepared to consider a bid between €2.50 and €2.70 a share.

Quick facts: AER Lingus Group plc

Price: - -

LSE:AERL
Market: LSE
Market Cap: -
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Cora Gold active on the ground and 'driving ahead with its ambitious growth...

Cora Gold's (LON:CORA) Bert Monro tells Proactive London's Andrew Scott that given the relatively remote location of its projects they're continuing on with their busy work programmes. He says the big focus for the firm now is taking Sanankoro into development. Monro adds that they're...

4 hours, 17 minutes ago

2 min read