LONDON--The Irish government said Tuesday that it could not back
a proposed takeover of Aer Lingus Group PLC (EIL1.DB) by British
Airways parent International Consolidated Airlines Group SA
(IAG.LN), even after both carriers said they would support such a
deal.
"The information and commitments that have been provided to
date, do not at present provide a basis on which the government
could give an irrevocable commitment to accept an offer to dispose
of its shares," Irish Transport Minister Paschal Donohoe said.
"The minority holding which the state has in Aer Lingus would
not be sold unless the market conditions were favorable, the terms
of the sale were satisfactory to the government and an acceptable
price could be secured," he added.
The Irish government holds a 25% stake in Aer Lingus.
Separately, IAG said it was aware of the Irish government's
response and would consider it in due course.
Last month, IAG made a preliminary bid for Aer Lingus of 2.55
euros ($2.89) a share in an all-cash deal, which included a five
euro cents a share dividend. Aer Lingus said it could support such
a bid, pending the backing by major shareholders, including the
Irish government.
Robert Wall contributed to this article.
Write to Tapan Panchal at tapan.panchal@wsj.com
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