Ryanair, who already owns 29.8 percent of Aer Lingus, submitted a bid of €694 million (roughly $1 billion U.S.) to its shareholders to gain a controlling interest of its chief competitor, which is currently run by the Irish government.
European Union regulators blocked Ryanair’s bid for Aer Lingus in 2007, saying they would have a monopoly in the Dublin market of over 80 percent.
“In six years as a public company, Aer Lingus has failed to deliver value,” Ryanair chief executive officer Michael O’Leary claimed in a letter accompanying the bid document.
At current trading, Aer Lingus is worth roughly €568 million.
O’Leary pledged to lift Aer Lingus’s annual passenger total to 14 million over five years from 9.5 million today and said his company would invest in expanding transatlantic flights.
Sites That Link to this Post
- Aer Lingus Rejects Ryanair Takeover Bid | July 18, 2012
- Ryanair Posts €900 Million in Earnings Despite Tough Economy | July 19, 2012