Etihad-backed Aer Lingus in fresh takeover bid

British Airways owner IAG is launching a third takeover approach of Etihad-backed Aer Lingus, according to Reuters.

The carrier has valuable Heathrow slots.
The carrier has valuable Heathrow slots.

Etihad has a 4.1% stake in the Irish carrier.

“International Consolidated Airlines Group, SA (“IAG”) confirms it has submitted an improved proposal to make an offer for Aer Lingus. The proposal consists of an offer of €2.55 per share, structured as a cash payment of €2.50 per share, payable upon completion, in addition to an ordinary dividend of €0.05 per share… There can be no certainty that any further proposal or offer will be forthcoming. A further statement will be made if and when appropriate,” IAG, the parent company of BA and Spain’s Iberia, said in a statement to the Irish Stock Exchange on Monday.

The group has already had two rejections from Aer Lingus, but the acquisition would give British Airways more take-off and landing slots at London Heathrow Airport. The airport is close to capacity and its European access is highly profitable.

Ryanair will need to give the go ahead on any deal as it holds a 29.9% stake in the carrier. The Irish government also boasts a sizeable stake in the carrier.

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