Aer Lingus rejects bid by British Airways parent

FILE - A Wednesday, June 20, 2012 file photo showing a flock of sheep paying no heed as two Aer Lingus jets taxi and take off at Dublin Airport, Ireland. The Dublin-based carrier has rejected a takeover bid by IAG, the parent company of British Airways and Spain's Iberia. Aer Lingus previously has rejected three bids from its major Irish rival Ryanair, which is Aer Lingus' biggest shareholder. (AP Photo/Shawn Pogatchnik) FILE - A Wednesday, June 20, 2012 file photo showing a flock of sheep paying no heed as two Aer Lingus jets taxi and take off at Dublin Airport, Ireland. The Dublin-based carrier has rejected a takeover bid by IAG, the parent company of British Airways and Spain's Iberia. Aer Lingus previously has rejected three bids from its major Irish rival Ryanair, which is Aer Lingus' biggest shareholder. (AP Photo/Shawn Pogatchnik)

By Associated Press December 18, 2014 2 min read

DUBLIN (AP) – Irish airline Aer Lingus has rejected a takeover bid by the International Consolidated Airlines Group, the parent company of British Airways and Spain’s Iberia.

Shares in the Dublin-based carrier surged by as much as 21 percent Thursday amid rumors of a bid. Those gains were sharply pared after IAG issued a statement confirming its proposal had been rejected by the Aer Lingus board, but the stock still finished Dublin trading up 9 percent at a seven-year high of 1.99 euros ($2.45).

Aer Lingus described the IAG offer as “preliminary, highly conditional and non-binding” and said it “fundamentally undervalues Aer Lingus and its attractive prospects.”

No price details of Sunday’s offer were disclosed. Aer Lingus rejected the offer two days later.

Analysts long have seen IAG as a likely bidder for Aer Lingus. Its Irish chief executive, Willie Walsh, was previously chief executive of Aer Lingus before the formerly state-owned airline’s 2006 privatization.