IAG publishes terms of €1.4bn bid for Aer Lingus

British Airways parent IAG has formally announced its offer for Aer Lingus, valuing the airline at €1.4 billion.

IAG's document pledges to preserve Aer Lingus as a separate operating business within the group while maintaining its brand and head office in Ireland.

It also promises boost connectivity and keep the Heathrow landing slots for seven years, noting it has agreed the basis for legally binding commitments with the Irish Government on these issues.

The terms, announced last month, would see Aer Lingus shareholders receive €2.55 in cash for each share held, comprising a cash payment of €2.50 and a cash dividend payment of 5 cents.

IAG said its offer would remain on the table for acceptance until 5pm on July 16th.

Aer Lingus also notified shareholders that an extraordinary general meeting would be held on the morning of July 16th for the purposes of seeking approvals of the connectivity resolutions agreed by both sides.