Aer Lingus (EI, Dublin International) says it has indeed received a third offer from the International Airlines Group (IAG). In a filing to the London Stock Exchange, the Irish carrier says the IAG has increased its previous offer of EUR2.40 (USD2.74) per share to EUR2.55 (USD2.86) per share. Broken down into its constituent parts, the IAG offer is structured as a cash payment of EUR2.50 per share, payable upon completion, in addition to an ordinary dividend of EUR0.05 per share - dubbed the "Revised Proposal".

"The Revised Proposal remains conditional on, amongst other things, confirmatory due diligence, the recommendation of the Board of Aer Lingus and the receipt of irrevocable commitments from Ryanair Limited and the Minister for Finance of Ireland to accept the offer, all of which may be waived in whole or in part by IAG," the filing read.

Aer Lingus' board said it had found the offer acceptable and would be willing to recommend it to its existing shareholders, among which is the Irish government.

For their part, Irish Minister of Transport, Paschal Donohoe, has said Dublin would assemble an interdepartmental expert group to make contact with IAG to assess the issues surrounding its potential offer for Aer Lingus.

According to the IAG, Aer Lingus would operate as a separate business with its own brand, management, and operations. The carrier would continue to provide connectivity to Ireland in line with the IAG's goals of boosting both investment and tourism in the country.

In addition to rejoining Oneworld which it left in 2007, Aer Lingus would also become a part of IAG’s transatlantic joint venture with American Airlines (AA, Dallas/Fort Worth), leveraging both the strong US-Ireland market as well as Dublin International's advantageous geographical position for onward connecting traffic.

"IAG believes that the proposal would secure and strengthen Aer Lingus's brand and long term future within a successful and profitable European airline group, offering significant benefits to both Aer Lingus and its customers," the Group said in its own filing.