Aer Lingus has confirmed that its board is considering a sweetened offer from British Airways owner IAG.
The Irish flag carrier said IAG had raised its all-cash offer to €2.55 (£1.90) per share, including a cash dividend per share of five euro cents.
It added that the proposal remains conditional on due diligence, board recommendation and the receipt of “irrevocable commitments from Ryanair and the minister of finance for Ireland” to accept the offer.
The board of Aer Lingus is widely expected to recommend the offer to shareholders, with analysts having previously named €2.50 “the magic number” to persuade the irish airline to open talks.
Ryanair, Aer Lingus’ biggest shareholder with a 29.8pc stake, said last week that IAG would probably need to pay between €2.50 and €2.70 to take control. However, Crystal Amber, the biggest institutional investor in Aer Lingus, has claimed that IAG might have to offer up to €3 a share.