Aer Lingus to accept latest takeover bid from IAG

IAG, the owner of British Airways, will reportedly announce that Irish airline Aer Lingus has accepted its recent takeover bid.

The Irish carrier confirmed on Monday that it was considering a new of €2.50 per share in a move which values it at €1.3bn.

The FTSE 100 group may, however, face difficulties getting Irish officials to agree to the takover. The government, which owns a quarter of the airline, said in recent comments that it would "exercise great caution" over any proposal for the sale.

Aer Lingus confirmed on Monday that the revised proposal "remains conditional on irrevocable commitments from Ryanair and Irish government".

IAG's worries relate to competition, employment and connectivity, especially in relation to its transport link between Dublin and the London hub Heathrow.

However, while stressing the issues that would have to be considered when making a decision on the potential sale, transport minister for Ireland Paschal Donohoe said “other hub options are becoming available” thanks to congestion at the UK airport.