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.