Aer Lingus backs £1bn takeover deal

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Published: Tuesday 27th January 2015 by The News Editor

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A £1 billion takeover of Aer Lingus by the owner of British Airways has moved a step closer after the Dublin-based carrier gave its backing to a deal.

The Aer Lingus board said it was prepared to accept a sweetened offer worth 2.55 euros (£1.90) a share from International Airlines Group (IAG), although progress now hinges on major shareholders Ryanair and the Irish Government.

IAG, which owns Spanish carrier Iberia, said it plans to operate Aer Lingus as a separate business with its own brand, management and operations.

IAG wants the Irish carrier to join the oneworld airline alliance, of which British Airways and Iberia are members, and become part of of a jo int business that IAG operates over the North Atlantic with American Airlines.

The FTSE 100-listed company said its proposal would secure and strengthen Aer Lingus’s brand and long-term future, while offering “significant benefits” to both the Irish company and its customers.

It added: “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.”

Published: Tuesday 27th January 2015 by The News Editor

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