Aer Lingus has rejected a takeover bid by the British Airways owner as it “fundamentally undervalues” the Irish carrier.
Shares in Aer Lingus jumped more than 19 per cent after details of the approach by International Consolidated Airlines Group (IAG) emerged. They have since come back following the rejection and are now up 9 per cent. IAG is up 4 per cent.
“The board confirms that on December 14, 2014, it received a preliminary, highly conditional and non-binding approach from IAG,” Aer Lingus said.
“The board has reviewed the proposal and believes that it fundamentally undervalues Aer Lingus and its attractive prospects. Accordingly, the proposal was rejected on December 16, 2014.”
IAG, which also owns Spanish carrier Iberia and the low-cost airline Vueling, said that