Aer Lingus , the Irish flag carrier started talks on the latest enhanced IAG offer. IAG faces public opposition to their proposed improved takeover offer of Aer Lingus which has returned to profit under the CEO Chritsoph Mueller. The carrier has rejected two earlier from IAG.
Amid oil price falls, IAG’s spending boosted power accelerates the need for IAG to buy Aer Lingus at an higher price 17times 2015 earnings. The latest offer is conditional on due diligence, recommendation of Aer Lingus Board and the acceptance of the offer by Ryan Air (29.9 per cent) and Irish government (25.1 per cent). If the deal goes ahead there will be inevitable job losses in Ireland.
Irish government could differ their decision and refer to European Commission , if a combine entity would have to dispose of Heathrow’s landing and take off slots Opposition politician have called on the coalition to reject the latest bid, so job losses can be prevented and Ireland’s connection to Heathrow and beyond.
IAG is eyeing the Aer Lingus lucrative 23 Heathrow landing slots worth £30m each, where they are fourth largest operator.