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Wind Beneath Aer Lingus Wings After Takeover Attempt

Published on Dec 19 2014 11:12 AM in General Industry

Wind Beneath Aer Lingus Wings After Takeover Attempt

After news that International Consolidated Airline Group (IAG) tried to buy Aer Lingus went public, the Irish airline's share value increased by 20 per cent at a certain point yesterday (the overall increase stands at about 14 per cent, according to the Financial Times).

Industry sources believe that it could, as a result of IAG's offer, be valued at €1 billion (€1.87 per share) now.

The Government’s 25-per-cent holding would be worth between €250 million and €275 million; Ryanair’s would stand at between €298 million and €328 million.

Any effort to purchase Aer Lingus would need to be amenable to both – the two biggest shareholders – in order to be executed.

Minister for Transport Paschal Donohoe feels the IAG approach was a question only for the airline's board.

The Government has said it would consider selling its stake "only when market conditions are favorable, and on terms and at a price that are acceptable."

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