Aer Lingus set to accept new offer

BRITISH Airways parent IAG is expected to announce today that Aer Lingus has accepted its latest takeover offer.

Aer Lingus will be valued at £960millionGETTY

Aer Lingus will be valued at £960million

The €2.50-a-share bid will value the Irish airline at €1.3billion (£960million).

The deal may hit a stumbling block if the Irish government, which owns a 25 per cent stake in the flag carrier, opposes the move

However, the deal may hit a stumbling block if the Irish government, which owns a 25 per cent stake in the flag carrier, opposes the move.

It recently said it would "exercise great caution" if a further offer was made.

Officials previously resisted three approaches from Ryanair amid concerns over competition and connectivity - particularly the vital Dublin to Heathrow route.

Transport minister Paschal Donohoe last week said the government would consider the same issues when evaluating a proposal from IAG. But he said that while connectivity "remains critically important", congestion at Heathrow has meant "other hub options are becoming available".

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