26th Jan 2015 07:37
LONDON (Alliance News) - Irish airline Aer Lingus Group PLC Monday confirmed that it has received a revised EUR2.55 a share cash offer from International Consolidated Airlines Group SA, and said its board is considering the offer.
It is the second time that IAG has raised its offer for the Irish flag carrier, whose major shareholders include the Irish government and Ryanair Holdings PLC. The parent of British Airways and Spain's Iberia originally offered EUR2.30 a share, and then raised its offer to EUR2.40 a share.
The latest offer comprises a EUR2.50 a share cash offer for Aer Lingus shares and a cash dividend of EUR0.05 a share. In total, the offer values Aer Lingus at EUR1.36 billion, according to an Alliance News calculation.
Aer Lingus is not an easy takeover target due to its shareholding. Ryanair has made several attempts to acquire its Irish rival, but has been thwarted by its shareholders and regulators. It built up a 29% stake in Aer Lingus during its acquisition attempts, and has signaled that it may support a takeover of Aer Lingus by IAG.
Kenny Jacobs, Ryanair's chief marketing officer, said recently that Ryanair has not held talks with IAG but held no particular concerns about the company taking control of the Irish flag carrier.
The Irish Times reported on Sunday that the Irish government will consider IAG's takeover bid for the country's national carrier. Transport Minister Paschal Donohoe was reported as saying the government would assess the value of the offer and any impact of the sale on Ireland's links to the rest of the world. The Irish government has a 25.1% stake in Aer Lingus.
By Steve McGrath; [email protected]; @stevemcgrath1
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