The proposed takeover also faces months of regulatory scrutiny from competition authorities in Ireland, Britain and the European Union. The two-party government enjoys a strong majority, but support from the coalition's smaller left-wing party, union-linked Labour, is uncertain. A vote is tentatively scheduled for Wednesday. The government decision also will require majority approval by parliament. But as Europe's most profitable and cash-rich airline, Ryanair can afford to stand firm and demand more. The offer, if taken, would allow Ryanair to recoup most of its paper losses from its investment in Aer Lingus. Ryanair, which built up a 30% stake in Aer Lingus as part of three hostile takeover bids since 2006, said before Tuesday's announcement it had received no communications from IAG. The biggest could be to persuade the Irish airline's largest shareholder - rival Dublin-based carrier Ryanair - to accept the price. The government, which floated the other three-quarters of Aer Lingus on the British and Irish stock markets in 2006, would receive 350 million euros ($380 million).īut to succeed, the IAG offer still must clear many hurdles. IAG first launched its takeover bid in December and, as part of its latest offer of 2.50 euros ($2.72) per share, values the Dublin-based carrier with the trademark shamrock logo at 1.4 billion euros ($1.52 billion). It confirmed promises to keep Aer Lingus as a separate brand, to reserve its valuable landing slots at London's Heathrow Airport for Aer Lingus use, and several other conditions demanded by the government in exchange for its acceptance. IAG, which also operates Spain's Iberia airline, confirmed revised terms of its takeover offer in tandem with Ireland's Cabinet announcement. DUBLIN (AP) - Ireland intends to sell its 25% stake in the Aer Lingus airline to IAG after receiving guarantees that the parent company of British Airways will increase employment and air links with the United States, the government announced Tuesday.
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