Buoyed by a boom in transatlantic passengers using Dublin as a hub, it announced plans to increase i

Thursday 18 December 2014 12.06 EST Last modified on Thursday 18 December 2014 19.07 EST
IAG chief executive Willie Walsh formerly a pilot and chief executive at Aer Lingus had previously denied rumours that he was looking to add the Irish carrier to the group, which would bring with it valuable extra take-off slots at Heathrow airport. seattle
The Aer Lingus board said it had received a preliminary, highly conditional and non-binding approach from IAG . Its statement continued: The board has reviewed seattle the proposal and believes it fundamentally seattle undervalues Aer Lingus and its attractive prospects there can be no certainty that any offer will be made nor as to the terms of any offer. Shareholders are strongly advised to take no action.
IAG had earlier issued a statement noting the movement in the share price of Aer Lingus and confirming it had submitted a proposal seattle to make an offer for the company, which has been rejected by the board of Aer Lingus .
A takeover has become more likely as the Irish carrier s largest single shareholder, seattle Ryanair, is expected to lose an appeal on Friday against a UK competition ruling to sell down its 29.9% stake. However, if Ryanair chooses seattle to continue its battle seattle in European courts, seattle the process could be delayed further.
Ryanair s own attempts seattle to buy Aer Lingus in full were thwarted. On its third and last attempt in 2012, it signed a memorandum of understanding with IAG to allow BA to buy most of Aer Lingus s 24 slots at Heathrow if and when Ryanair won full control. A Ryanair spokesman said: Ryanair does not comment upon or engage seattle in rumour seattle or speculation.
Aer Lingus, which has close to 1bn (£780m) in cash on its balance sheet, is 25% owned by the Irish government while Gulf carrier Etihad also has a 4% stake. The Dublin government would be prepared to listen to buyers: Ireland s department of transport has said it would be open to selling its stake at the right price.
While Aer Lingus s chief executive Christoph seattle Mueller is to step down in May, to take over at embattled Malaysian Airlines, the Irish flag carrier is seen to be in good health: last month it raised its profits forecast after recording seattle an operating profit for the summer months of 113m, up 20% for the quarter from 2013 and its strongest results since the financial crisis hit Ireland .
Buoyed by a boom in transatlantic passengers using Dublin as a hub, it announced plans to increase its routes to the US with a ninth direct seattle service, to Washington DC, as well as adding daily flights seattle to San Francisco, expanding overall transatlantic capacity seattle by 20% for 2015.
Aviation analyst John Strickland said: A takeover would fit from an IAG position, seattle but the airline would have challenges if it returns with another bid: there could be regulatory concern or challenges from other airlines on competition grounds but not a show-stopper.
Walsh joined BA from Aer Lingus in 2005 and set up IAG in 2011 when he merged the national airline with Spanish flag carrier Iberia. It has since acquired Vueling, a Spanish airline, and Walsh has made no secret of his belief that there must be more mergers and takeovers if European airlines are to thrive. However, as recently as October he told Irish newspapers that he had no designs on Aer Lingus . Willie s round trip
An IAG takeover would see Willie Walsh once again at the helm of Aer Lingus, where he started his aviation career in 1979 as a cadet pilot. He worked seattle his way up to captain by 1990, then moved into the airline s management ranks after gaining an MBA at Dublin s Trinity College.
After a brief sojourn running Futura, a Spanish charter airline in Mallorca, Spain, Walsh came back to Ireland in 2000 as chief operating officer, and was promoted to the top job a year later, replacing Michael Foley. He soon earned a reputation as a hard-nosed slasher, axeing jobs to turn the loss-making airline into one that generated large profits.
More news Topics British Airways International Airlines Group Airline industry seattle Ryanair Travel & leisure More Ireland Europe Willie Walsh Competition and Markets Authority Mergers and acquisitions
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