British Airways is ready to bid bigger for Aer Lingus
British Airways owner IAG SA is planning to increase its offer for Aer Lingus Group Plc after the Irish carrier rebuffed previous approaches, according to people familiar with the matter.
IAG is considering increasing the proposed offer to as much as 2.50 euros ($2.95) a share as early as this week, though no final decision has been made, said the people, who asked not to be identified because talks are private. London-based IAG said Jan. 9 that Aer Lingus rejected an offer worth 2.40 euros per share, which valued the Irish company at 1.28 billion euros.
Buying Dublin-based Aer Lingus would help swell IAG’s bank of scarce take-off and landing positions at London Heathrow, Europe’s busiest hub, where British Airways is the No. 1 carrier. The Irish airline would add transatlantic flights and help compete with discount airline Ryanair Holdings Plc.
Representatives for IAG and Aer Lingus declined to comment. A representative for Ryanair did not immediately respond to requests for comment.