The investment banking arm of the global financial firm, Credit Suisse is one of three key advisers to the Government in relation to IAG’s bid for Aer Lingus.
It has emerged that an investment index operated by Credit Suisse’s separate asset management division - the Credit Suisse Abritrage Liquid Index - has taken a position on Aer Lingus shares based on the differential between the prevailing Aer Lingus share price and the €2.55 per share that IAG has offered. This is effectively betting that the deal will go through.
At yesterday’s price of €2.40 that differential would be about 15c per share.
A spokesman for New Era, the State agency which manages the value of certain semi-state assets said that “there were detailed provisions in place to guard against possible conflicts of interest in the provision of advice in relation to a sale of Aer Lingus to IAG,” a position also stated by Credit Suisse.
An exact timeline for the Government's decision on IAG's bid for its stake in Aer Lingus remains unclear, it is believed that an inter-departmental report on the bid has been completed, and it is likely that it will be discussed by the Cabinet over the next two weeks.