Sunday 22 April 2018

Aer Lingus sale: Board of airline gives IAG offer the green light

Aer Lingus
Aer Lingus
Aer Lingus chairman Colm Barrington

The board of Ireland's Aer Lingus strengthened its support for British Airways-owner IAG's takeover approach, saying that following talks with its suitor, the deal made compelling commercial sense.

IAG's €1.36bn takeover approach already had the qualified backing of Aer Lingus's board with a formal recommendation subject to the Irish state selling its 25 percent holding but the government has yet to be convinced.

"The board's view is that a combination of AerLingus with IAG has a compelling strategic rationale and will deliver significant benefits for Aer Lingus, its employees, its customers and for Ireland," chairman Colm Barrington said in a statement.

Aer Lingus's statement provided more detail than its original recommendation, explaining that Ireland would become a hub for connections, that the deal would accelerate Aer Lingus's planned transatlantic growth and lead to new employment.

Transport Minister Paschal Donohoe said the matter remains under consideration by the Government.

"I have had an opportunity to meet with IAG and Aer Lingus this week to engage directly with them. I note the statement from Aer Lingus this afternoon and the matter remains under consideration by Government," he added.

Reuters

Business Newsletter

Read the leading stories from the world of Business.

Also in Business