It appears that well-known Irish carrier Aer Lingus has once again rejected a takeover offer from International Airlines Group. For those who don’t know, IAG is the current owner of British Airways. In a statement that was released early on Thursday, Dec. 18, the group said that it submitted another takeover offer to Aer Lingus. The company had high hopes, but once again, the offer was sent back.
It’s unknown how happy shareholders are that Aer Lingus continues to refuse IAG’s offers. In fact, earlier this week, Aer Lingus saw its stock jump nearly 14 percent after word got out that IAG was making a bid. Now, it’s likely that the stock will go back down since it rejected the offer.
So why does IAG want to buy Aer Lingus so badly? Mostly for the landing spots that Aer Lingus has at Heathrow Airport, not so much the carrier itself. After all, Aer Lingus is the third-largest carrier at the London terminal in terms of take-off and landing slots.
Of course, maybe Aer Lingus rejected the offer because it knew it wasn’t going to happen anyway. This deal would require not only the approval of the Irish government but that of Ryanair as well. This is because both of these parties hold stakes in Aer Lingus. However, with stock increasing on the very thought of a takeover, there is curiosity about if the deal would have been approved.
IAG, which also owns Vueling and Iberia, said that it noted recent movements in the shares of Aer Lingus. At this time, IAG submitted another proposal to Aer Lingus to make the company part off the IAG family. Aer Lingus rejected, and there is no certainty moving forward that IAG will make another offer. If another offer is put forward, IAG will wait for a time that is appropriate.
As of Thursday, shares for both companies were looking good. Aer Lingus stocks were still up 9 percent, and IAG was enjoying a boost of 4.5 percent. Aer Lingus still has a lot going for itself. In fact, the company operates a huge fleet of 47 Airbus planes. The company currently flies more than 10.6 million people every year.
The airline industry is always changing. Companies go out of business or are purchased by other companies all the time. However, there are some companies, such as Aer Lingus, that fight the flow of power. IAG is a huge company and one that is hard to say no to. Aer Lingus has stood its ground and doesn’t look like it will back down anytime soon.