Irish government receives report on Aer Lingus sale

DUBLIN, May 24 (Reuters) - The Irish government said on Sunday it had received a report by an expert group advising it on the possible sale of its 25 percent stake in Aer Lingus (Other OTC: AELGF - news) to British Airways owner IAG, paving the way for a long-delayed decision.

International Consolidated Airlines Group's (IAG) proposed 1.36 billion euro ($1.5 billion) bid was recommended by Aer Lingus' board in January but is conditional on the support of the airline's two main shareholders - rival Ryanair and the Irish state.

The government decision has been delayed for months by the preparation of the report, which could help the government win over some sceptical members of parliament and the airline's trade unions.

The Sunday Business Post, without citing sources, reported that the government would announce after its weekly cabinet meeting on Tuesday that it is backing the sale.

But a transport ministry spokesman said that while the minister had received the report, the issue was "not on the agenda" for that meeting. The government can add an issue to the agenda at the last minute.

The government will bring the matter to a conclusion in the coming weeks, the spokesman said.

Ministers have said in recent weeks that the position of 30 percent shareholder Ryanair was key to the government's decision.

Ryanair has not disclosed its plans, but it releases its annual results on Tuesday morning and several senior executives will speak to the media.

The Sunday Business Post also reported that Ryanair would approve the deal, triggering a formal offer from IAG.

A Ryanair spokesman reiterated the company's insistence that it would consider the sale only after a formal offer was made. ($1 = 0.9079 euros) (Reporting by Conor Humphries; Editing by Dale Hudson)