26th Jan 2015 17:51
London (Alliance News) - Shares in takeover target Aer Lingus rose Monday ahead of a crucial Dublin meeting to discuss a sweetened offer for Ireland's national airline from International Airlines Group (IAG), the parent company of British Airways.
The share price rose 1.3% after IAG put in a cash offer of 2.55 euros (2.87 dollars) a share, trumping its previously rejected offers of 2.30 euros and 2.40 euros.
The offer is to be discussed at the Irish cabinet's weekly meeting in Dublin on Tuesday.
At the weekend, Irish Transport Minister Paschal Donohoe was reported as saying the cabinet would assess not just the valuation of the airline, but the implications for Ireland's links to the rest of the world if the government lost control.
The Irish government has a 25.1% stake in Aer Lingus. Budget carrier Ryanair, a previous Aer Lingus suitor, has a 29.8% stake.
The BBC speculated that IAG boss Willie Walsh, a former Aer Lingus chief, covets the airline's take-off and landing slots at London's Heathrow airport, where Aer Lingus is the fourth-largest operator after British Airways, Lufthansa and Virgin Atlantic.
His latest offer for Aer Lingus values the airline at around 1.3 billion euros.
Walsh was the driving force behind the deal that saw Spain's Iberia folded into IAG three years ago, a splicing that was aimed at cutting costs to ward off encroachments from Etihad, Emirates and other Middle East rivals that operate big hub airports.
Copyright dpa
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