From Reuters news agency
BA mulling bid for Aer Lingus -paper
Sun 18 July, 2004 12:52
DUBLIN (Reuters) - British Airways is mulling a possible takeover bid for Irish state airline Aer Lingus, BA's chief executive officer has been quoted as saying.
CEO Rod Eddington said BA would not make a move until the Irish government clarified its plans for the airline's future.
"But we'd certainly be an interested party," Eddington told Ireland's Sunday Independent newspaper, adding that he had asked bankers to work out how much any such buy-out might cost.
"Whether it would make sense for both parties to have an equity investment at some point, time will tell," the paper quoted Eddington as saying.
"My starting point it what the Irish government want to see happen. When we know the answer to that we'll be able to reflect on whether we'd want to participate or not."
Earlier this month, senior management at Aer Lingus asked the government for permission to seek financial backing for a buy-out of their own.
A three-man team comprising Chief Executive Willie Walsh and his chief financial officer and chief operations officer said it was confident "an attractive proposal could be developed and financed" if government consent was forthcoming.
If the government gave the nod to that request, the airline would effectively be on the market, with a bidding process being open to other potential buyers.
BA, like other airlines, has said it wants to see further consolidation in the European industry.
Aer Lingus, which has realigned itself under former pilot Walsh as a low-fare player after a brush with bankruptcy in 2001, has long been slated for sell-off.
It posted a stronger-than-expected operating profit last year of 83 million euros (55 million pounds), compared to an operating loss of more than 50 million in 2001.
BA mulling bid for Aer Lingus -paper
Sun 18 July, 2004 12:52
DUBLIN (Reuters) - British Airways is mulling a possible takeover bid for Irish state airline Aer Lingus, BA's chief executive officer has been quoted as saying.
CEO Rod Eddington said BA would not make a move until the Irish government clarified its plans for the airline's future.
"But we'd certainly be an interested party," Eddington told Ireland's Sunday Independent newspaper, adding that he had asked bankers to work out how much any such buy-out might cost.
"Whether it would make sense for both parties to have an equity investment at some point, time will tell," the paper quoted Eddington as saying.
"My starting point it what the Irish government want to see happen. When we know the answer to that we'll be able to reflect on whether we'd want to participate or not."
Earlier this month, senior management at Aer Lingus asked the government for permission to seek financial backing for a buy-out of their own.
A three-man team comprising Chief Executive Willie Walsh and his chief financial officer and chief operations officer said it was confident "an attractive proposal could be developed and financed" if government consent was forthcoming.
If the government gave the nod to that request, the airline would effectively be on the market, with a bidding process being open to other potential buyers.
BA, like other airlines, has said it wants to see further consolidation in the European industry.
Aer Lingus, which has realigned itself under former pilot Walsh as a low-fare player after a brush with bankruptcy in 2001, has long been slated for sell-off.
It posted a stronger-than-expected operating profit last year of 83 million euros (55 million pounds), compared to an operating loss of more than 50 million in 2001.
