Aer Lingus Rejects Ryanair Takeover Bid

Aer Lingus

Aer Lingus has urged its shareholders to reject Ryanair’s bid to take over the Irish airline saying they ‘undervalue the business’.

‘In a letter to shareholders urging them to reject the offer, the carrier said the reasons were stronger than at the time of the first failed bid in 2006.

Ryanair offered 1.30 euro (£1.02) a share and the Government, which retains a stake in the airline since privatisation, said it will look at the new takeover attempt.’

Aer Lingus says they understand the European Commission is not likely to approve the takeoever due to anti-trust concerns.

Aer Lingus released a statement that read, in part:

“Aer Lingus is a robust and profitable airline with a proven business model, a strong balance sheet and an internationally recognised brand,” the airline said.

“Your board’s unanimous view is that Ryanair’s offer to acquire control of Aer Lingus for 1.30 euro per share fundamentally undervalues Aer Lingus.”

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