Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

The many concerns that have been voiced regarding IAG's potential takeover offer for Aer Lingus have been raised when limited detail is available.  It is important to note that IAG has made a proposal to make an offer and that no formal offer has yet been made.

At this point, all we know is what the companies have announced publicly.  IAG has made a number of approaches to the board of Aer Lingus regarding a potential offer for the company. The financial terms of the latest proposal are €2.55 per share and the board has indicated to IAG that these financial terms are at a level at which it would be willing to recommend, subject to being satisfied with the manner in which IAG proposes to address the interests of relevant parties.  The board of Aer Lingus has also indicated that the latest proposal from IAG remains conditional on, among other things, prior agreement from Ryanair and the Government to accept the offer.  IAG's latest statement yesterday indicates that the company is proposing to offer legally binding commitments on a number of matters.

Under the Irish Takeover Panel rules, I and my Government colleagues are constrained in what we can say at this time. I do, however, hope to get more details over the coming weeks and, if so, these will be examined very carefully against the public interest criteria I have previously set out, including connectivity to and from Ireland, which includes Heathrow and direct transatlantic services, competition, jobs in Irish aviation and the Aer Lingus brand. The Government will make a decision on any offer based on these considerations. I also wish to remind the House that the Aer Lingus Act 2004 requires that the principles of any disposal be laid before and approved by the Dáil before any sale of the Government’s 25.1% shareholding.

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