Aer Lingus rejects takeover bid from IAG

British Airways and Iberia owner International Airlines Group (IAG) has made a takeover bid for Aer Lingus, IAG said in a statement on Thursday, although the Irish flag carrier rejected it.

IAG, led by former Aer Lingus boss Willie Walsh, said in a statement: "IAG notes the recent movement in the share price of Aer Lingus and confirms it submitted a proposal to make an offer for the company, which has been rejected by the board of Aer Lingus.

"There can be no certainty that any further proposal or offer will be forthcoming. A further statement will be made if and when appropriate."

The news comes despite reports emerging as recently as October citing Walsh as saying he had "no designs" on Aer Lingus despite the Irish flag carrier having valuable take-off and landing slots at congested Heathrow airport.

Aer Lingus said in a statement: "The board confirms that on 14 December 2014 it received a preliminary, highly conditional and non-binding approach from IAG.

"The board has reviewed the proposal and believes it fundamentally undervalues Aer Lingus and its attractive prospects. Accordingly, the proposal was rejected on 16 December 2014.

"There can be no certainty that any offer will be made nor as to the terms of any offer. Shareholders are strongly advised to take no action."

Shares in IAG closed 19.9p up at 463.5p and Aer Lingus stock rose €0.16 or 8.8% to €1.98.