Europe



British Airways owner International Airlines Group (IAG) said it would not up its €1.4 billion euro (£1 billion) offer for Aer Lingus amid speculation that major stakeholder Ryanair will play “hard ball” over the deal.

Aer Lingus planes at Dublin Airport.

Aer Lingus planes at Dublin Airport. Image by Artur Widak/PA Wire

The low-cost airline, which owns 29.8% of the Irish flag carrier, has become “kingmaker” in the takeover bid after the deal was given the green light by the Dublin government – which itself has a quarter share of Aer Lingus.

IAG chief executive Willie Walsh said it was a “compelling offer” and that he expects Ryanair, controlled by flamboyant boss Michael O’Leary, to “behave in a rational way”.

A stock exchange announcement from the group today said: “IAG confirms that the offer price is final and will not be increased.”

Earlier this week it was announced that terms on a deal have been agreed by the Aer Lingus board and details of the recommended offer are being sent to shareholders but Ryanair has been keeping its cards close to its chest.

(Press Association)