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| Ireland to sell Aer Lingus stake to IAG | |
| (34 minutes later) | |
| The Irish government has agreed to sell its 25% stake in Aer Lingus to IAG, the owner of British Airways. | The Irish government has agreed to sell its 25% stake in Aer Lingus to IAG, the owner of British Airways. |
| The board of the Irish airline is also recommending IAG's €1.36bn (£961m) takeover offer for Aer Lingus. | The board of the Irish airline is also recommending IAG's €1.36bn (£961m) takeover offer for Aer Lingus. |
| While the Irish government is now supporting the takeover offer, the other big shareholder in Aer Lingus, Ryanair, is yet to make a decision. | While the Irish government is now supporting the takeover offer, the other big shareholder in Aer Lingus, Ryanair, is yet to make a decision. |
| Ryanair chief executive Michael O'Leary recently said his company would consider any offer from IAG. | Ryanair chief executive Michael O'Leary recently said his company would consider any offer from IAG. |
| A spokesperson for Ryanair, which owns a 29.8% stake in Aer Lingus, said on Tuesday: "The board of Ryanair has yet to receive any offer, and will consider any offer on its merits, if and when an offer is made." | A spokesperson for Ryanair, which owns a 29.8% stake in Aer Lingus, said on Tuesday: "The board of Ryanair has yet to receive any offer, and will consider any offer on its merits, if and when an offer is made." |
| Legally binding | Legally binding |
| Last year Aer Lingus rejected two takeover offers from IAG saying they undervalued the business. | Last year Aer Lingus rejected two takeover offers from IAG saying they undervalued the business. |
| There was also opposition to the IAG offer from Irish MPs who were concerned that services between Irish airports and London's Heathrow might be cut. | There was also opposition to the IAG offer from Irish MPs who were concerned that services between Irish airports and London's Heathrow might be cut. |
| However under Tuesday's deal, IAG has agreed to a legally binding commitment to maintain current services between Heathrow and Dublin, Cork and Shannon for at least seven years. | However under Tuesday's deal, IAG has agreed to a legally binding commitment to maintain current services between Heathrow and Dublin, Cork and Shannon for at least seven years. |
| In a statement, Aer Lingus chairman Colm Barrington said: "This is a compelling transaction for Aer Lingus, its shareholders, its employees, its customers and for Ireland. | In a statement, Aer Lingus chairman Colm Barrington said: "This is a compelling transaction for Aer Lingus, its shareholders, its employees, its customers and for Ireland. |
| "The company will reap the commercial and strategic benefits of being part of the much larger and globally diverse IAG Group." | "The company will reap the commercial and strategic benefits of being part of the much larger and globally diverse IAG Group." |
| 'Cast-iron guarantee' | 'Cast-iron guarantee' |
| Under the deal Aer Lingus will operate its international passenger services under the Aer Lingus brand. | Under the deal Aer Lingus will operate its international passenger services under the Aer Lingus brand. |
| The company will also keep Aer Lingus as its registered name and its head office will remain in the Republic of Ireland. | The company will also keep Aer Lingus as its registered name and its head office will remain in the Republic of Ireland. |
| Willie Walsh, chief executive of IAG said that under the deal "Aer Lingus would maintain control of its brand and operation while gaining strength as part of a profitable and sustainable airline group in an industry that's consolidating". | Willie Walsh, chief executive of IAG said that under the deal "Aer Lingus would maintain control of its brand and operation while gaining strength as part of a profitable and sustainable airline group in an industry that's consolidating". |
| "Ireland's vital air links to Europe and North America would be enhanced, creating new jobs, with cast-iron guarantees on ownership of Aer Lingus' Heathrow slots," he added. | "Ireland's vital air links to Europe and North America would be enhanced, creating new jobs, with cast-iron guarantees on ownership of Aer Lingus' Heathrow slots," he added. |
| The deal will require approval by the Irish parliament. | The deal will require approval by the Irish parliament. |