Aer Lingus Open to New Takeover Offer from British Airways Parent

By Paul Riegler on 26 January 2015
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DSC_0632Irish flag carrier Aer Lingus is giving serious consideration to a new takeover bid from British Airways parent IAG, its board of directors said.

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)

Accura News

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