Ireland to sell Aer Lingus stake to IAG

The Irish government has agreed to sell its 25% stake in Aer Lingus to IAG, the owner of British Airways.

The board of the Irish airline is also recommending IAG's €1.36bn (£961m) takeover offer for Aer Lingus.
While the Irish government is now supporting the takeover offer, the other big shareholder in Aer Lingus, Ryanair, is yet to make a decision.
Ryanair chief executive Michael O'Leary recently said his company would consider any offer from IAG.
A spokesperson for Ryanair, which owns a 29.8% stake in Aer Lingus, said on Tuesday: "The board of Ryanair has yet to receive any offer, and will consider any offer on its merits, if and when an offer is made."

Legally binding

Last year Aer Lingus rejected two takeover offers from IAG saying they undervalued the business.
There was also opposition to the IAG offer from Irish MPs who were concerned that services between Irish airports and London's Heathrow might be cut.
However under Tuesday's deal, IAG has agreed to a legally binding commitment to maintain current services between Heathrow and Dublin, Cork and Shannon for at least seven years.
In a statement, Aer Lingus chairman Colm Barrington said: "This is a compelling transaction for Aer Lingus, its shareholders, its employees, its customers and for Ireland.
"The company will reap the commercial and strategic benefits of being part of the much larger and globally diverse IAG Group."