Etihad has said it would sell its 4.9 per cent stake in Aer Lingus if the Irish government backs IAG’s bid for the airline.
The Financial Times reported Etihad CEO James Hogan saying that the Abu Dhabi-based carrier’s investment in Aer Lingus had been sound and would deliver “a great return” if the IAG bid gets government approval.
Abu Dhabi-based Etihad is the third largest shareholder in Aer Lingus. In 2012 Etihad took a 3 per cent stake in Aer Lingus in 2012 and increased its share to 4.9 per cent last year.
Earlier this year, Aer Lingus confirmed it was willing to accept a takeover offer of €2.55 a share from British Airways owner IAG.
The Irish carrier said the proposed €1.36 billion bid was “subject to certain pre-conditions” and granted IAG access to perform a "limited period of confirmatory due diligence".
Ryanair also has a large stake in Aer Lingus but is currently battling against a court ruling which has ordered it sell down its 30 per cent stake to around 5 per cent.
Ryanair claims that IAG's recent bids to buy Aer Lingus “wholly disproves the unsubstantiated claim its shareholding prevents other airlines from merging with or bidding for Aer Lingus”.