After much press speculation over the past few weeks, International Airlines Group (parent company of British Airways, Iberia and Vueling) has submitted a further takeover bid for Aer Lingus.
Aer Lingus has formally acknowledged the bid, valued at €2.50 a share with a cash dividend of €0.05 per share.
Aer Lingus say the bid remains conditional on, amongst other things, confirmatory due diligence, the recommendation of the Board of Aer Lingus and the receipt of irrevocable commitments from Ryanair and the Minister for Finance of Ireland to accept the offer.
The key stumbling block to IAG acquiring Aer Lingus will be the Irish Government which holds a 25.1% stake in the airline. The Irish Government will need to be satisfied that links between London Heathrow and Ireland will be maintained and Aer Lingus will not loose its Heathrow slot-holdings.
Here are some thoughts we gathered before Christmas on what may happen of IAG is successful in acquiring Aer Lingus.
Update: Ireland’s RTE is reporting that Aer Lingus may make a statement on Tuesday about the bid.
Aer Lingus has issued a statement on Tuesday recommending the bid. International Airlines Group has also statement confirming that if the acquisition goes ahead Aer Lingus will maintain its own brand and join the Oneworld alliance and transatlantic joint-venture with BA and American Airlines. IAG will also seek to assuage concerns about the maintenance of links between London Heathrow and Cork and Shannon by entering into discussions with the Irish Government.