IAG could make improved offer in third Aer Lingus takeover bid

Contacts are expected to continue this week between Aer Lingus and IAG after the airline rejected a second takeover bid.

The offer valued the company at €1.28bn, or €2.40 a share.

There is speculation that IAG could try a third time to take on Aer Lingus.

Founder of JLS consulting, John Strickland, says they will have to put up an improved offer.

Mr Strickland said: "It's a successful company, it's well managed, it's profitable and it's been putting out good results recently.

"Certainly the board of Aer Lingus recognises that and the price is going to have to be higher."