BA owner set to gain control of Aer Lingus

British Airways owner IAG is expected to gain control of Aer Lingus early next year, despite having an initial takeover proposal rejected.

The Aer Lingus share price shot up by nearly 14% by mid-afternoon, on the back of rising speculation about an IAG approach, which stemmed from a report in the Financial Times. However, those share gains were pared back when IAG formally confirmed it had submitted a takeover proposal, but that it had been rejected by Aer Lingus. IAG did not specify a price offering.

In a statement, Aer Lingus confirmed the receipt of “a preliminary, highly conditional and non-binding approach” from IAG, but said its board believed it “fundamentally undervalues” Aer Lingus and its “attractive prospects”.