Aer Lingus rebuffs higher offer from BA owner IAG

Aer Lingus has rejected a renewed offer from British Airways owner IAG.

The revised takeover bid made at the end of December was for 2.40 euros (£1.88) per share.

The Irish carrier had rebuffed an earlier approach from IAG earlier in the month worth 2.30 euros a share, saying it undervalued the business.

By acquiring Aer Lingus, IAG would have gained more take-off and landing slots at Heathrow, its home base, allowing it to operate more flights.

But an acquisition of Aer Lingus would require the backing of the budget carrier, Ryanair which owns 29.9% of the company, and has itself tried and failed to take it over.

The Irish government owns 25% of Aer Lingus and would also have had to agree the deal.