Aer Lingus Rejects Takeover Bid by British Airways Parent IAG
British Airways parent IAG confirmed it had “submitted a proposal to make an offer” for Irish flag carrier Aer Lingus, and that it had been rejected by Aer Lingus’ board of directors. IAG said that it had no specific plans to revise its offer.
“There can be no certainty that any further proposal or offer will be forthcoming,” the airline said in a statement
Aer Lingus said it had rejected the takeover proposal because it “fundamentally” undervalued the airline and its prospects.
The acquisition of Aer Lingus would give BA access to additional landing slots at London’s slot-constrained Heathrow airport, since Aer Lingus is the third biggest carrier there.
A takeover would require the support of the Irish government as well as low-cost carrier Ryanair. Both hold stakes in Aer Lingus.
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