IAG Lines Up Third Bid For Irish Airline Aer Lingus

Irish airline Aer Lingus has announced that it will consider a new improved takeover bid from IAG. The British Airways parent is now ready to pay 2.55 euros ($2.85) per share for the airline.

Unlike IAG's last two offers, made in the last month, the Aer Lingus board did not reject the new bid immediately.



Monday's published offer represents a significantly higher bid than the 2.50 euros per share that airline officials circulated to British and Irish media over the weekend. It includes payment of an extra five-cent dividend per share.



But the Aer Lingus board warned that accepting the offer would be conditional on what it called "irrevocable commitments" from the airline's two largest shareholders, Ryanair and the Irish state.



Landing slots in focus



IAG was formed in 2009 by a merger between British Airways and Spanish carrier Iberia, and is headed by Willie Walsh, Aer Lingus chief executive from 2001 to 2005. It has long been considered a logical suitor for Aer Lingus following the failure of three hostile takeover bids by Dublin competitor Ryanair.



Ryanair also faces a regulatory order to cut its stake to 5 percent after its two bids left it owning 29.8 percent of the company.



Aer Lingus is most prized for its ownership of 24 landing slots at Heathrow Airport near London, British Airways' primary base, which are valued at 400 million euros alone.



bk/hg (Reuters, AP)