The board of Ireland's Aer Lingus (AERL.I) strengthened its support for British Airways-owner IAG's (ICAG.L) takeover approach on Friday, saying that following talks with its suitor, the deal made compelling commercial sense.
IAG's 1.36 billion euro takeover approach already had the qualified backing of Aer Lingus's board with a formal recommendation subject to the Irish state selling its 25 percent holding but the government has yet to be convinced.
"The board's view is that a combination of AerLingus with IAG has a compelling strategic rationale and will deliver significant benefits for Aer Lingus, its employees, its customers and for Ireland," chairman Colm Barrington said in a statement.
Aer Lingus's statement provided more detail than its original recommendation, explaining that Ireland would become a hub for connections, that the deal would accelerate Aer Lingus's planned transatlantic growth and lead to new employment.
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