Aer Lingus Open to New Takeover Offer from British Airways Parent
IAG, which also owns Iberia in Spain, is said to have offered €2.55 per share in an all-cash deal that includes a cash dividend of €0.05 per share, thus valuing Aer Lingus at €1.36 billion ($1.53 billion).
Last year, Aer Lingus rejected two bids from IAG because they “fundamentally” undervalued the airline and its prospects. Low-cost carrier Ryanair currently owns 29.8% of the airline.
The deal could face political hurdles in Ireland because the Irish government holds a 25% stake in the airline.
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.
(Photo: Accura Media Group)