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THE BOARD of Aer Lingus has advised shareholders not to take any immediate action following yesterday’s announcement by Ryanair that it would launch a new attempt to gain control of its Irish rival.
In a brief statement this morning the flag-carrier’s board said it “notes” Ryanair’s bid, where the budget airline is offering €1.30 for each of the airline’s shares.
That bid would value the airline at a total of €694 million – a healthy valuation when compared to the €502 million that it would cost to buy each of Aer Lingus’s shares at €0.94, the price they traded at yesterday.
“Aer Lingus will make a statement in due course. In the meantime, Aer Lingus shareholders are urged to take no action,” the board said.
Announcing its latest takeover attempt yesterday, Ryanair said the circumstances surrounding a potential purchase had “changed materially” since its first bid was rebuffed in 2006.
An Aer Lingus takeover would not be subject to the approval of its own shareholders, Ryanair said, because the investment needed to purchase the airline would be below the threshold requiring an EGM.
The government, which owns a 25 per cent stake in Aer Lingus, has previously indicated its willingness to sell the shareholding, though transport minister Leo Varadkar said the government would reject any price below €1 per share.
Ryanair’s attempt may yet face opposition from the European Commission which blocked a similar plan in 2007 on the grounds that a merged airline would hold too great a share of the Irish aviation market.
The latest attempt is Ryanair’s third to gain full control of its older rival: in October 2006 it offered €1.48 billion to buy the company, and in December 2008 it offered €748 million in a bid which was rejected by the board.
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It will never happen, but if it helps to make that clown Varadkar lose the tiny shred of credibility he has left, then that’s fine with me!
So you’d like us to revert to a monopoly situation in air travel just to spite Varadkar? Dude: that’s commitment! :-)
When you hide your identity behind a nom de plume and refer to one of our most intelligent Ministers as a clown and then propose the culmination of a multi million Euro business deal to potentially embarrass that individual then the idiot is more evidently yourself. Most of what you write is vindictive drivel that stinks of a fetid and out of date political cause deep in left wing territory.
Whatever Minister Veradkar and the Government decide to do with their share in Aer Lingus will have my vote. I wouldn’t look to people like you for advice.
Guessing this is their main motivation
“Ryanair believes that its new Offer for Aer Lingus now provides Etihad or any other party with the opportunity to bid for the Government’s 25 percent stake, should they wish to do so. It also enables the Irish Government to maximise the proceeds from any disposal by not excluding Ryanair from bidding and ensures that the Government can achieve a significant premium to Aer Lingus’ recent share price of less than €1.
Ryanair has confirmed that should Etihad (or any other investor) acquire the Government’s stake, then Ryanair would be willing to work with that party to grow Aer Lingus successfully, or alternatively Ryanair would be willing to enter into discussions with that party with a view to disposing of Ryanair’s shareholding subject to agreement on price. ”
EU Competition Authority already explained that one company would have a monopoly on 30 Irish routes, 80% of Dublin’s shorthaul etc.
Seems to me that Ryanair are playing the media for free advertising again.
Richard Mark Rodgers!!! Based on the fact that you think Leo Varadkar is one of our most intelligent ministers, I’m not even going to try and defend my comment! I shall say though, just because my political beliefs differ from yours, doesn’t give you the right to deem them out of date!
Dave! My point is that Ryanair are offering 30cents per share more than Leo Varadkar said the government would consider selling at! I no more than most people want to see Ryanair get full ownership of Aer Lingus! I just enjoy seeing that clown Varadkar look stupid!!
hi leo
Leo Varadkar is one of the worst Ministers in a government made up of incompetent Ministers and a clueless Taoiseach who had to hide during the recent referendum. If anybody can get this wrong it’s Leo “foot in mouth” Varadkar.
Ryanair and Aer Lingus currently offer competitive prices on their routes due to the competition each imposes on the other. It is a matter of opinion of course but I believe that a majority would agree that Aer Lingus offers a better standard of service (more flexible if a bit inconsistent on baggage charges, more primary airport destinations..) and yet Aer Lingus’s prices are very competitive with Ryanair and in some instances lower. The idea that we would lose the choice and allow Ryanair a virtual monopoly on air transportation out of the Island is against the best interests of the Irish Citizen. Aer Lingus outperformed Ryanair on many routes last year, he has stepped on many toes and although still incredibly successful its growth opportunities appear alot more limited. We need low fares and a choice of service standards, if Ryanair were the main airline in and out of Ireland it is also easy to see how their cheap publicity stunts could be associated with the country itself and regardless of what your opinion of Leo Varadkar is, hopefully he can see that this is a clear case of immediate political interest being alligned with the interest of the common good and say no, they will get less for allowing a Ryanair monopoly than they give to Bondholders every other month, hopefully they are not that inept.
have your say