Speculation regarding IAG interest in Aer Lingus and BMI

17th Oct 2011 15:41

Etihad, the fast growing Middle Eastern airline, has approached the Irish government regarding its 25% stake in flag-carrier Aer Lingus, according to people with knowledge of the move, reports the Financial Times.Irish transport minister Leo Varadkar said that he would not sell it for less than €1 per share, which would value the airline at €529.6m, versus its current market value of €338.94m.Nonetheless, International Airlines Group is widely held to be the most likely company to come away with Aer Lingus. Of interest, Etihad is also said to have been in talks with Virgin Atlantic on a possible partnership should the UK carrier bid for BMI, the loss-making subsidiary of Lufthansa.Likewise, International Airlines Group is said to have tabled a preliminary offer for BMI, which holds valuable take-off and landing slots at Heathrow airport.As of 3:36PM shares of IAG are trading down by 1.3% to the 164.3p mark in London trading. AB