Aer Lingus rejects Ryanair takeover bid

Aer Lingus directors have unanimously voted to reject the most recent hostile takeover bid by rival low-cost carrier Ryanair.

Ireland’s flag carrier has said that Ryanair’s £670 million offer “significantly undervalues” the airline and in addition it would see the budget rival establishing a monopoly of services and connections out of and into the country.

Aer Lingus chairman Colm Barrington and its chief executive, Dermot Mannion, met with Ireland’s transport minister, Noel Dempsey, to explain their opposition to the takeover bid.

They have described Ryanair’s bid as a move to “eliminate competition in the Irish market place, which would be a disaster for the government and is unacceptable to both consumers and to the EU Commission.”

After meeting with the Aer Lingus executives, Mannion commented: “We had a productive meeting with the Minister and have committed to give the government, as well as all other shareholders, a comprehensive rebuttal of Ryanair’s offer after the publication of its offer document.”

The Aer Lingus CEO added: “Ryanair cannot spin away the fact that Aer Lingus is and will continue to be its fiercest competitor into and out of Ireland. It is offering other Aer Lingus shareholders a mere €525 million, a pathetic sum in the context of the €1.3 billion in cash on the group’s balance sheet, the substantial value of our fleet and the value of the Heathrow slots.”

Thanks to www.travelmole.com for the above quotes, for more information on this article please visit their website.

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