British Airways owner International Consolidated Airlines Group SA (IAG) has confirmed that it attempted to buy Irish airline Aer Lingus but their proposal was rejected.
Aer Lingus have released a statement confirming that they turned down a bid on Tuesday, which was submitted to them on Sunday.
“The Board has reviewed the Proposal and believes that it fundamentally undervalues Aer Lingus and its attractive prospects,” it reads.
“There can be no certainty that any offer will be made nor as to the terms of any offer. Shareholders are strongly advised to take no action,” it concludes.
IAG, which also owns Madrid-based Iberia, had earlier in response to media speculation confirmed that their bid had been rejected by the Dublin-based company’s board.
“There can be no certainty that any further proposal or offer will be forthcoming,” the statement continued. “A further statement will be made if and when appropriate.”
Aer Lingus would be an attractive asset to the company, as they are the third largest airline at Heathrow and would have given IAG valuable access to landing slots at Europe’s busiest airport.
Earlier today, after the Financial Times reported that IAG were considering a bid, Aer Lingus shares jumped by 14 per cent., but any future bid would need to be backed by the Irish government and Ryanair who both a portion of the company.