Sir, – It is infuriating to hear the IAG bid being described as €2.55 a share when in fact IAG is offering to pay only €2.50 with the other five cent being paid as a dividend out of Aer Lingus’s own cash reserves. With 535 million shares in issue, five cent per share amounts to €26.75 million of the company’s own money.
Also, as Aer Lingus has nearly €400 million in cash in its balance sheet, the net offer of IAG is €940 million and not the €1.34 billion being touted.
If you were an IAG route planning manager who could use a Heathrow slot to send an Airbus A320 with 170 seats to Dublin or an Airbus A380 with 550 seats to Los Angeles, which would you choose?
Michael O’Leary is correct in saying IAG cannot favour any one shareholder over another and consequently copper-fastened guarantees about Heathrow slots is not permissible. That leaves just promises.
The Government owns 25 per cent of Aer Lingus and without those shares IAG would be unable to pass a special resolution. The sale of the Government’s stake requires a vote in the Dáil. Labour now has an opportunity to save its skin in the next general election by voting against selling the Government’s 25 per cent stake in Aer Lingus to IAG. Jobs and slots would be protected. It’s the decent thing to do. – Yours, etc,
BRENDAN FRAWLEY,
Blackrock,
Co Dublin.