LONDON (Alliance News) - International Consolidated Airlines Group SA Thursday continued to talk up safeguards relating to its takeover offer for Aer Lingus as it looks to convince Irish politicians to agree to the deal.
IAG has submitted a proposal to make an offer valuing Aer Lingus at EUR2.55 per share, the rough equivalent of EUR1.36 billion, and requires the approval of the Irish Government, which owns 25% of the company, for the acquisition to go ahead.
Aer Lingus has already indicated that it would be willing to recommend IAG's bid.
"At a meeting of the Irish Joint Committee on Transport and Communications (Oireachtas) in Dublin today Willie Walsh, IAG chief executive, said that he believed that there would be a compelling commercial case to continue Aer Lingus flights between Cork and Shannon to London Heathrow," the company said in a statement.
IAG said it is offering a specific commitment relating to the operation of slots to serve the London Heathrow - Shannon and London Heathrow - Cork routes. The owner of British Airways and Spanish airlines Iberia and Vueling said it is making the commitments after talks with the Irish Government and in response to concerns raised by the Minister of Tourism, Transport and Sport.
The commitment would apply for five years, IAG said.
The safeguards would require Irish government approval for Aer Lingus' slots at London Heathrow to be sold, including to other IAG airlines, while Aer Lingus' name, head office location or place of incorporation in the Republic of Ireland cannot be changed.
"The Aer Lingus Heathrow Slots would be operated on Irish routes for at least five years and, within that general commitment, 3 daily slots would be operated on London Heathrow - Shannon and 4 daily slots would be operated on London Heathrow - Cork," IAG said.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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International Airlines (IAG)