Aer Lingus shares fall almost 10pc today amid reports that Government is preparing to reject IAG offer
SHARES in Aer Lingus fell almost 10pc this afternoon amid reports that the Government is preparing to reject IAG’s indicative offer to buy a 25pc stake in the Irish airline.
Bloomberg reported that a person familiar with the situation had been told the Government will refuse the deal.
“A final decision has yet to be taken, according to the person, who asked not to be identified because the matter isn’t public,” Bloomberg reported. A Department of Transport official declined to comment on the status of deliberations, as did a spokeswoman for IAG.
Last week, IAG chief executive Willie Walsh offered some assurances on maintaining Aer Lingus routes between Ireland and the UK as he tried to overcome mounting political resistance to the proposed takeover of the airline he ran until 2005.
IAG has said it won’t proceed without the endorsement of the Government.
Aer Lingus dropped as much as 21 cents to €2 in Dublin today, the biggest drop t in 15 months.