International Airline Group (IAG), owners of British Airways and Spanish carrier Iberia is understood to have offered £1bn, £1.87 (€2.50) per share in a cash bid for the Irish Carrier Aer Lingus, which persuaded the company to enter formal talks
and recommend the offer to shareholders. Earlier Aer Lingus board had rejected offers of €2.30 and €2.40per share.
International Airline Group CEO Willie Walsh, former trainee pilot and ex-boss of Aer Lingus showed persistence to acquire the airline. Buying Aer Lingus will give IAG the lucrative Heathrow landing slots and Dublin base for their transatlantic flights. Still the stumbling block to this deal will be winning he backing of the Irish Government, a 25% shareholder. Ryanair, owned by Michael O’Leary however holds 29.8% of Aer Lingus. In he past the Irish Government has prevented a take of Aer Lingus by Ryanair , saying worries about competition and employment.
Christoph Muller CEO of Aer Lingus and other directors are understood to have met on 23rd January2015, to formally discuss the latest offer.