British Airways owner rises as it bids for Ryanair’s Aer Lingus stake

 
Charlotte Henry
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SHARES in International Airlines Group (IAG) climbed steeply yesterday, with investors welcoming the prospect of its bid for Aer Lingus.

Shares in the British Airways owner ended up 3.21 per cent, at a value of 562p a share. The Irish airline’s shares also took off, closing up 2.63 per cent at €2.56 (£1.70).

The rises come after the Irish government backed the Aer Lingus sale, and agreed to sell its 25 per cent holding in the airline.

To finalise the deal, IAG must now buy the stake owned by Ryanair. The budget airline owns 29 per cent of the shares in the former flag carrier.

The offer will come within days. Speaking at news conference in Dublin, IAG boss Willie Walsh said: “We’re in the position now where we will be issuing the formal offer documents within 28 days”.

Walsh ruled out raising his company’s offer from the €2.55 a share offer made on Tuesday, which valued Aer Lingus at €1.36bn.

Yesterday, a Ryanair spokesman said: “The board of Ryanair has not received any offer, and will examine any offer on its merits if and when one is received.”

Ryanair also rose 2.35 per cent.

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