Vueling board accepts revised takeover bid by IAG

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The board of Spanish low-cost carrier Vueling is advising shareholders to accept an improved takeover bid of €9.25 ($12.12) per share by International Airlines Group (IAG).

Vueling had rejected IAG's previous offer of €7 per share in March, following a strong rally in the stock price.

"The board of Vueling recommends shareholders to accept the improved offer," reads a notice sent to Spain's stock exchange regulator the National Securities Market Commission (CNMV).

It justifies the recommendation on the basis of the offer being "reasonable and within the valuation issued by experts", adding that closer co-operation between Vueling and IAG will open up "advantages and opportunities".

IAG, the parent company of Spain's Iberia and British Airways, already owns 45.85% of Vueling.

Group chief executive Willie Walsh said in February that Vueling would be kept as a "standalone entity" if the takeover bid was successful, with CEO Alex Cruz retaining his role in the airline.