Wednesday 17 January 2018

Incoming Aer Lingus CEO backs IAG takeover bid

Business Week

Taoiseach Enda Kenny with outgoing Google Ireland boss John Herlihy (left) and incoming Google boss Ronan Harris
Taoiseach Enda Kenny with outgoing Google Ireland boss John Herlihy (left) and incoming Google boss Ronan Harris

Paul O'Donoghue

There appears to be no quick end in sight to the Aer Lingus/IAG saga, which has turned into one of the great will they/won't they business stories of the year.

Despite still facing significant - and mainly political - opposition, the deal at least has the backing of incoming Aer Lingus CEO Stephen Kavanagh. He said that turning down the British carrier's bid would leave Aer Lingus "increasingly vulnerable" as the Irish market is "constrained in terms of opportunity".

Company chair Colm Barrington has also backed the deal, saying that it could create 200 jobs within a year at the airline.

Irish Tesco jobs at risk in massive company overhaul

Things have gone from bad to worse for Tesco over the past number of months for Tesco, and now it appears that its Irish employees are potentially in the firing line.

While it has no planned closures in the Republic yet, 10,000 jobs are set to go across the operations of the embattled retailer with a layer of middle management set to be removed.

This is thought to likely expose at least a portion of Tesco's 15,000 Irish staff to cuts.

The retailer also continued to haemorrhage Irish shoppers to discounters such as Aldi and Lidl and now looks set to lose its spot as Ireland's number one supermarket chain to rival SuperValu.

Google Ireland chief leaving

After 10 years at the helm, John Herlihy is to step down as the chief of Google's Irish operations.

Under the watch of the Limerick native, the internet giant saw its Irish operations grow from 50 people to more than 4,500 employees.

Herlihy, who is the company's vice president of sales and operations as well as the managing director of its Irish operations, also saw the company secure its EMEA campus on Barrow Street in Dublin after purchasing the Montevetro Building for around €100m.

He will be succeeded by Google veepee Ronan Harris when he steps down shortly.

Greeks close in on rescue deal after crunch talks

With the €240bn EU/IMF bailout program due to expire in little over a week, Eurozone finance ministers agreed a an outline deal to extending Greece's financial rescue package.

The agreement removes the immediate risk of Greece running out of money next month and possibly being forced out of the Euro.

It also provides breathing space for the new Greek government to try to hammer out a longer-term debt relief plan with its creditors.

Germany, Greece's biggest creditor, had demanded "significant improvements" in reform commitments by Greece before it would rubberstamp an extension of the eurozone funding package.

So, roll on four months to the next crisis.

Providence says funding talks still under way

Oil explorer Providence Resources, which is trying to develop the Barryroe oilfield off Cork, told investors that it was still in talks regarding funding and a farm-out for what could be the biggest oilfield ever discovered off Ireland.

Shares had dived on speculation that a deal would be delayed.

Sunday Indo Business

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