IAG share price steady as Ireland decides on Aer Lingus sale

on May 26, 2015
Updated: Oct 21, 2019

Shares in International Consolidated Airlines Group (LON:IAG) have advanced in today’s session, with the Irish government debating whether to sell its 25.1-percent stake in Aer Lingus (LON:AERL) to the British Airways and Iberia owner. In a separate development, the Irish carrier’s biggest shareholder Ryanair (LON:RYA) today said that it would consider any offer ‘on its merits’.

As of 13:39 BST, IAG’s share price had added 0.98 percent to 547.82p. Speculation that Dublin would agree to sell its holding have lifted Aer Lingus’ share price which currently stands 2.12 percent higher at €2.41.
Reuters today quoted Ireland’s Prime Minister Enda Kenny as telling journalists before a weekly Cabinet meeting that Transport Minister Paschal Donohoe would make a presentation on an expert report on the potential sale of Aer Lingus to IAG. A government spokesman confirmed to RTÉ that there had been a ‘positive discussion’ at Cabinet this morning, with the meeting adjourned until 18:15 BST in the evening.
A report in the Irish Times suggested that the expert group, commissioned by the transport minister, had concluded that the price offered by IAG for Aer Lingus was ‘a fair one’ for the assets. The British Airways owner, which has offered €1.36 billion for the Irish carrier, has also reportedly agreed to maintain Aer Lingus’ Heathrow slots on Irish routes for a minimum of seven years, increasing its previous five-year period commitment.
A key issue is also Ryanair’s stance, with the company holding a near 30-percent stake in Aer Lingus. The low-cost carrier today said in its full-year results statement that its approach to IAG’s offer remained unchanged.
“The Board of Ryanair will consider any offer (should we receive one) from IAG on its merits, if or when it is received,” the airline said.
As of 14:31 BST, Tuesday, 26 May, International Consolidated Airlines Grp share price is 548.25p.

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