Aer Lingus board to approve third IAG takeover bid
IRISH airline Aer Lingus would continue to operate as a separate business with its own brand, management and operations if a proposed €1.36bn (£1.02bn) takeover by International Consolidated Airlines Group (IAG) goes ahead.
IAG stated yesterday that the board of Aer Lingus has indicated that the financial terms of its most recent bid “are at a level at which it would be willing to recommend to Aer Lingus shareholders”. The British Airways owner has now made three approaches to the Irish flag carrier, with the third offering €2.55 per share.
According to IAG, Aer Lingus will continue to provide connectivity to Ireland, “while benefitting from the scale of being part of the larger IAG group”, if the deal goes ahead.
The group said it would join Aer Lingus to the joint business IAG operates over the North Atlantic with American Airlines. The company said this would leverage the “natural traffic flows between Ireland and the US and the advantageous geographical position of Dublin for serving connecting flows”.
IAG also said that it “recognises the importance of direct air services and air route connectivity for investment and tourism in Ireland and intends to engage with the Irish Government in order to secure its support for the transaction”.
Shares in IAG went up by 2.2 per cent yesterday.