IAG has moved closer to securing a deal for Aer Lingus after the Irish airline said the latest offer is at the right level.
The latest price of €2.55 per share values Aer Lingus at €1.3 billion.
In a statement to the Stock Exchange, the Aer Lingus Board said it is willing to recommend the financial terms of the latest bid by the British Airways’ parent ‘subject to being satisfied with the manner in which IAG proposes to address the interests of relevant parties’.
"The Board notes IAG’s intentions regarding the future of the company, in particular that Aer Lingus would operate as a separate business with its own brand, management and operations, continuing to provide connectivity to Ireland, while benefiting from the scale of being part of the larger IAG group," said the statement.
IAG also issued a statement and confirmed that it wanted Aer Lingus to join the Oneworld Alliance and the joint transatlantic business IAG operates with American Airlines.
It added: "IAG believes that the proposal would secure and strengthen Aer Lingus’s brand and long term future within a successful and profitable European airline group, offering significant benefits to both Aer Lingus and its customers.
"IAG recognises the importance of direct air services and air route connectivity for investment and tourism in Ireland and intends to engage with the Irish Government in order to secure its support for the transaction."
No-frills carrier Ryanair, which owns 29.8% of Aer Lingus, is being forced by UK authorities to reduce its stake.
Industry observers believe it might be tempted to accept the latest offer from IAG, but Ryanair issued a short statement saying: "Our position has not changed. The Board of Ryanair will consider any offer on its merits, if and when an offer is made."
