27th Jan 2015 06:31
DUBLIN (Alliance News) - Irish airline Aer Lingus Group PLC's board is set to recommend its shareholders to accept a revised proposal from International Consolidated Airlines Group SA, according to media reports.
Earlier today, Aer Lingus Group confirmed that it received a revised proposal from International Consolidated Airlines Group, and that its board is considering the new offer.
The revised offer values each Aer Lingus share at 2.55 euros, comprising an all cash offer for the company of 2.50 euros per share and a cash dividend of 0.05 euro per share.
Dublin-based Aer Lingus received a preliminary, highly conditional and non-binding 2.30 euros per share offer from IAG on December 14, 2014. The airline rejected the offer on December 18, saying it fundamentally undervalued Aer Lingus and its attractive prospects.
IAG approached Aer Lingus again during the month, which was also rejected by the Irish airline. That sweetened proposal consisted of a cash offer of 2.40 euros per Aer Lingus share, subject to certain pre-conditions.
A bid to buy Aer Lingus needs the approval of the Irish government, which has about 25% stake in the airline, and also of Ryanair, which has a near 30% stake and had made unsuccessful offers to acquire Aer Lingus.
Copyright RTT News/dpa-AFX
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