The owner of British Airways, IAG has reportedly made the third offer for €1.34bn, amounting to €2.50 per share to acquire Aer Lingus.

IAG makes third offer at €1.34bn to acquire Aer Lingus

IAG makes third offer at €1.34bn to acquire Aer Lingus

Having made two unsuccessful offers in the past, the owner of British Airways International Airlines Group (IAG), has now made a third bid to acquire Aer Lingus. The Financial Times reported today that the deal will offer the FTSE 100 company nearly €2.50 per share.
However, spokesmen from both Aer Lingus and IAG declined to comment. The bids for the revised amount is followed by the two earlier attempts to have a deal with Aer Lingus. Last month, the British Airways owner approached Aer Lingus with offers for €2.30 and €2.40 per share, which were both spurned by the company.
At the end of Friday, shares of Aer Lingus closed at €2.35 and the offer that has now been made by IAG seems to be good. However, before finalizing any such deal, the top management should obtain the approval of shareholders. Ryanair is the biggest investor in Aer Lingus and it has a 29.8pc stake. Earlier this month, it was said that IAG would have to pay something between €2.50 and €2.70 per share to buy the company.
The Irish government is the second largest shareholder of the company with 25.1pc stake. Paschal Donohoe, Transport minister of Ireland said that the government would “take great care and exercise great caution in examining the pros and cons to Ireland” in a statement on Tuesday.
However, the opposition transport spokesman Timmy Dooley is urging the government to sign a deal. Acquiring Aer Lingus will get IAG more sought after take-off and landing sites in Heathrow. Following the deal, the company also might develop Dublin into a hub. Head of IAG Willie Walsh would be returning to the company where he started his career, if a deal were made.