The board at Irish budget airline Aer Lingus (EIL) is considering a revised €2.55 a share offer from International Consolidated Airlines (IAG), the owner of British Airways. The new offer - which values Aer Lingus at roughly €1.36bn - improves on two previous bids. But the deal is still dependent on the recommendation of Aer Lingus's board and both Ryanair (RYA) and the Irish government. Ryanair holds a 29.8 per cent stake in Aer Lingus, while the Irish government owns just over 25 per cent of the company.
Aer Lingus is the fourth-largest operator at Heathrow after British Airways, German airline Lufthansa and Richard Branson's Virgin Atlantic. Analysts suspect that IAG's interest in Aer Lingus is focused on the airline's 23 pairs of take-off and landing slots at the airport. IAG was quick to reassure shareholders on both sides that, if acquired, Aer Lingus will still operate as a separate entity under its own branding. But a trade union representing Aer Lingus staff said a takeover could put 1,200 jobs in jeopardy - a quarter of the workforce.
Aer Lingus previously rejected offers worth €2.30 and €2.40 a share. But the latest bid represents a 47 per cent premium to the Aer Lingus share price on 16 December, which marked the initial approach by IAG.
