Aer Lingus Recommends Acceopting Iag Takeover Bid

AER LINGUS RECOMMENDS ACCEOPTING IAG TAKEOVER BID

The Public Expenditure Minister says the economic benefit for the people of Ireland will be ‘critical’ to any decision the government takes on the Aer Lingus takeover bid.

In a statement this morning, the airline says it recommends its shareholders accept the 1.3 billion euro offer from British Airways’ parent company IAG.

“IAG has indicated that it would only proceed with its third proposal with an indication from the board of Aer Lingus that it would be willing to recommend the financial terms of the revised proposal,” it says.

“Having considered this request, the board has indicated to IAG that the financial terms are at a level at which it would be willing to recommend, subject to being satisfied with the manner in which IAG proposes to address the interests of relevant parties.”

The statement goes on to outline that Aer Lingus would operate as a separate business with its own brand, management and operations, continuing to provide connectivity to Ireland, while “benefitting from the scale of being part of the larger IAG group.”

SIPTU and IMPACT trade unions have already voiced their concern about a potential deal – saying it could put jobs at risk.

While further worries have been voiced about the future of routes at Cork and Shannon airport, as well as Aer Lingus’s valuable landing slots at London Heathrow.

Minister Brendan Howlin says the Cabinet will consider ‘all issues’ very carefully.

“Even if the government sat and kept all of the 25 percent – it would be possible for some outside interest to have a controlling interest in Aer Lingus” he said.

“Holding onto 25 percent of the shares was done for a purpose – we’ve said what that purpose is – the growth and development for the economic benefit for the people of Ireland will be critical in any decision that we make in relation to our minority shareholding” he added.

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