International Consolidat... Share Discussion Threads

[skinny] 26/1/2015 07:02

Possible Offer Update


The Board of Directors of Aer Lingus (the "Board") confirms that it has received a revised proposal from International Consolidated Airlines Group, S.A. ("IAG") which values each Aer Lingus share at €2.55 comprising an all cash offer for the Company of €2.50 per share and a cash dividend of €0.05 per share (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.

The Board is considering the Revised Proposal.

This statement is being made by Aer Lingus without the prior agreement or approval of IAG. There can be no certainty that any offer will be made nor as to the terms of any offer. Shareholders are strongly advised to take no action.

[skinny] 26/1/2015 06:57

A bit more from the BBC, although no other real news sources....

[spob] 25/1/2015 19:58

Total disgrace if this bid is allowed

If Ryanair can't buy it how the hell can they give it to iag ?


British airways already has a monopoly on heathrow slots

[rufio90210] 24/1/2015 17:08

Would this takeover make iag share price fall short term ?

[alphorn] 24/1/2015 12:37

All cash bid? Cash rich companies will IMO go on a buying spree now that cash gives little/no return.

[smicker] 24/1/2015 11:10

Third time lucky?

hxxp://www.newstalk.com/IAG-new-takeover-bid-Aer-Lingus-value-shares-offer

[dac123] 23/1/2015 15:41

Nice to see you are still about, I had a wobble and went out at the time it looked like Syria was going to get bombed thankfully I cam back and am enjoying the ride

[robo175] 23/1/2015 13:51

Very positive broker notes.


Broker Date Rating Previous
assessment Latest
assessment Assessment
change Previous
target Latest
target Target
change
January 2015
Credit Suisse 23/01
Reiterates
Outperform
Outperform
678.00p 678.00p
Credit Suisse 21/01
Reiterates
Outperform
Outperform
678.00p 678.00p
Credit Suisse 16/01
Reiterates
Outperform
Outperform
654.00p 678.00p
RBC Capital Markets 14/01
Reiterates
Outperform
Outperform
550.00p
Jefferies International 13/01
Reiterates
Buy
Buy
480.00p 570.00p
Credit Suisse 12/01
Reiterates
Outperform
Outperform
654.00p 654.00p
Liberum Capital 12/01
Reiterates
Buy
Buy
600.00p 600.00p

[broadwood] 23/1/2015 13:42

Up around 80% in three months. You'd expect some consolidation but there seems to be no detractors.

I'm staying for the whole flight.

[robo175] 23/1/2015 12:10

Is the cat out the bag or is this going to get rerated, look at the PEG in it

,


also I particularly like this looking forward, written Jan 5th



These companies have emerged as winners from the airline shakeout
One of the survivors was British Airways, which, despite these straitened times, reinvented itself as one of the sector's premium, yet affordable, brands, turning losses into growing profits. The firm bought Iberia to form International Consolidated Airlines (LSE: IAG). I think this company will be one of the winners from the falling oil price.
Yet the shares are still reasonably priced: the 2014 P/E ratio is 16.4, falling to 10.1 in 2015. The dividend yield is 1.4%, rising to 2.2%. What's more, the oil price is falling so quickly that IAG is likely to beat these consensus forecasts.
Another business that will gain from low oil prices is no-frills airline easyJet (LSE: EZJ). The thing about a company like this is that because its costs are low, falling oil prices will mean that its margins, and thus its profitability, can increase rapidly. Just as the popularity of no-frills supermarkets is growing, more and more people are flying with low-cost airlines.
easyJet's shares are not expensively priced: the 2014 P/E ratio is 14.9, falling to 12.9 in 2015, with a dividend yield of 3.0% rising to 3.2%. Again, the company's profits could well be higher than these forecasts.
If, as I believe is the case, we have entered a new era of low oil prices, this means both IAG and easyJet are strong buys.

[robo175] 21/1/2015 16:46

Constant after market buying above the ask price.

[robo175] 20/1/2015 16:06

If this is anything to go by then AIG looking undervalued and is due a rerating.

[smicker] 20/1/2015 14:37

"Therefore we anticipate making a declaration in 2015 as the first step in our plan to introduce a sustainable dividend payment. The initial dividend would be based on a payout ratio of 25% of our underlying profit after tax."

Any idea what analysts are forecasting as a prospective yield?

[skinny] 20/1/2015 14:02

New high today @511p.

[rufio90210] 15/1/2015 12:01

Shares magazine BUY recommendation in todays issue, article below

with oil prices continuing to tank,
the travel and leisure sector looks
set to benefit from steep drops to
one of its most vital inputs.
This is likely to fuel the ebullience of airlines
like British Airways-owner International
Consolidated Airlines (IAG), currently
mulling the possibility of a third offer for its Irish
counterpart Aer Lingus (AERL).
Rami Myerson at Investec believe airlines will
use most of the gains from the lower fuel price
to discount tickets which, in turn, should help
stimulate air traffic growth. The International
Air Transport Association (IATA) is predicting
an acceleration in global air traffic growth to
7% in 2015, driven by improving global GDP
growth and that the sharp decline in fuel price
(which typically accounts for around 25-30% of
airline costs) could add as much as 20% to airline
industry profitability in 2015.
Irish stockbroker Davy sees the IAG/
Aer Lingus tie-up as being in the interests
of both parties. 'For the former, it provides
a growth angle: "a Heathrow third runway"
so to speak, with its main base increasingly
capacity constrained. For the latter, it provides
investment, growth and synergies.' As analyst
Stephen Furlong rightly surmises, 'it’s a question
of price.'
IAG is expected to make a third offer for Aer
Lingus after a second attempt to get its takeover
bid off the ground was rebuffed. IAG submitted
a revised proposal to make an offer for Aer
Lingus on 29 December, which was duly rejected
by the Aer Lingus board. The revised proposal
consisted of a cash offer of €2.40 per Aer
Lingus share, subject to certain pre-conditions,
representing an improvement to the €2.30
per Aer Lingus share that IAG had originally
submitted earlier that month.
Given that Aer Lingus shares are already
trading around the €2.40 mark, it is perhaps not
all that surprising that the Irish carrier rejected
the overtures of its own former chief executive.
Furlong thinks that an offer in the €2.50 range
could have strategic merit but it may have to be
a little more. The share price at the Irish flag
carrier has risen more than 40% since the first
offer from IAG went public in mid December.
Any rejection of a third putative bid could see
shares at the Irish airline return to pre-bid
levels as happened when Aer Lingus rejected
Ryanair's €2.80 bid in 2006.
ShareS SayS:;
At 478.2p IAG's expansion move is warranted
given falling oil prices and rising GDP

[skinny] 14/1/2015 11:41

RBC Capital Markets Outperform 494.45 400.00 550.00 Reiterates

[skinny] 13/1/2015 07:24

Jefferies International Buy 469.30 469.30 480.00 570.00 Reiterates

[jeffcranbounre] 12/1/2015 15:15

International Airlines Group is featured into today's ADFVN podcast.

To listen to the podcast click here>

In today's podcast:

- Technical Analyst Nicola Duke will be chatting and charting, Anite, Big Yellow Group, ITE, Union Jack Oil, Afren. Nicola on Twitter is @NicTrades

- And the micro and macro news including:

Quindell #QPP
Afren #AFR
Shire #SHP
ITV #ITV
Taylor Wimpey #TW.
Big Yellow Group #BYG
ITE #ITE
Union Jack Oil #UJO
Anite #AIE
Unite Group #UTG
Pace #PIC
Royal Mail #RMG
Prudential #PRU
Hikma Pharmaceuticals #HIK
AO World #AO.
Betfair #BET
Sound Oil #SOU
Advanced Oncotherapy #AVO
International Airlines Group #IAG
Afren #AFR
Ophir Energy #OPHR
Premier Farnell #PFL
New River Retail #NRR
Victrex #VCT
Catlin Group #CGL

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[bookbroker] 08/1/2015 15:42

Have these been left behind like other airlines over the Paris attacks?

[rufio90210] 08/1/2015 14:10

Alan Oscroft views

In response, International Consolidated Airlines (LSE: IAG) shares have climbed by 51% since early October to 489p today, reversing 2014’s decline to provide a 12% gain over the past 12 months. But is there any further to go and are the shares worth considering today?

Well, the company’s turnaround is expected to come good this year, and third-quarter operating profit was up 30% to €900m. Fuel costs were down 7.5%, and that was before the great oil slump!

Forecasts put International on a P/E of only 7.9 for 2015, dropping to 6.5 for 2016 when dividend yields are expected to be back to 2.6%. I generally don’t like airlines as an investment, but this one is looking tempting.

[rufio90210] 08/1/2015 14:10

Alan Oscroft views

In response, International Consolidated Airlines (LSE: IAG) shares have climbed by 51% since early October to 489p today, reversing 2014’s decline to provide a 12% gain over the past 12 months. But is there any further to go and are the shares worth considering today?

Well, the company’s turnaround is expected to come good this year, and third-quarter operating profit was up 30% to €900m. Fuel costs were down 7.5%, and that was before the great oil slump!

Forecasts put International on a P/E of only 7.9 for 2015, dropping to 6.5 for 2016 when dividend yields are expected to be back to 2.6%. I generally don’t like airlines as an investment, but this one is looking tempting.