The owner of British Airways has made a third takeover approach to Aer Lingus, offering to pay 2.50 euros per share or around 1.3 billion euros in total for the Irish airline, Sky News reported on Saturday. International Consolidated Airlines Group (IAG), which also owns Spanish carrier Iberia, has had two offers rejected by Aer Lingus, the last one in early January for 2.40 euros per share.
Buying Aer Lingus would give British Airways more take-off and landing slots at Heathrow, its home base and a top European hub for profitable long-haul routes. The airport is operating at close to capacity, preventing BA from adding more flights. Sky News said IAG had submitted a revised all-cash proposal within the last couple of days, which directors of the Dublin-based carrier had met to discuss. Official statements confirming the latest development could come on Monday morning.
Shares in Aer Lingus closed on Friday at 2.35 euros, giving it a market value of 1.26 billion euros. A spokeswoman for IAG declined to comment, while no one was immediately available to respond at Aer Lingus. Any acquisition of Aer Lingus would need the backing of budget airline Ryanair, which holds a 29.9 percent stake in Aer Lingus after its own three failed takeover attempts, and the Irish government, which owns 25 percent.
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