27th Jan 2015 07:20
LONDON (Alliance News) - Aer Lingus PLC Tuesday said its board has indicated to International Consolidated Airlines Group PLC that it would be willing to recommend the British Airways owners' EUR1.36 billion bid for the Irish airline.
IAG, which also owns Spanish airlines Iberia and Vueling, raised its bid for Aer Lingus for a second time on Monday, and is now offering EUR2.55 a share in cash in total. That figure includes a cash dividend of EUR0.05 a share.
"Having considered this request, the board has indicated to IAG that the financial terms are at a level at which it would be willing to recommend, subject to being satisfied with the manner in which IAG proposes to address the interests of relevant parties," Aer Lingus said in a statement.
In a separate statement, IAG said it has now been granted access to allow it to perform a limited period of due diligence.
The deal will need to be accepted by the Irish carrier's two biggest shareholders, Ryanair Holdings PLC and the Irish government. Both parties have said they will carefully considered the proposed deal.
The Irish Times reported Tuesday that the Irish government is unlikely to make its views known before it knows the views of antitrust regulators in Brussels. Those regulators have previously blocked Ryanair's attempts to acquire Aer Lingus.
"IAG 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," the airline group said in its statement.
By Steve McGrath; [email protected]; @stevemcgrath1
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