Ryanair attempt Aer Lingus takeover

aaron

Ryanair made a €738m (£645m) cash offer for Irish rival Aer Lingus yesterday, just 18 months after its €1.5bn bid was rejected by the European Commission on competition grounds.

The latest proposal – offering €1.40 per share, a 25 per cent premium on Friday's price – includes a commitment to double Aer Lingus's short-haul fleet to 66 aircraft, creating 1,000 new jobs for pilots, cabin crews and engineers over the next five years.

Read more at http://www.independent.co.uk/travel/news-and-advice/aer-lingus-rejects-new-euro738m-offer-from-ryanair-1047340.html

Aaron
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John_from_Eurapart · Posted: Wed Dec 03, 2008 7:09 pm Post subject:

Aer Lingus gives Ryanair the capability to realise their TransAtlantic carrier ambitions. They can see profits being made by existing airlines and they believe thay can make it even more profitable. I don't think they will get it through the EU, unless of course Aer Lingus goes like Alitalia, then they would probably allow the merger in order to save jobs and keep the Irish Flag Carrier in business.
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paul · Posted: Wed Dec 03, 2008 7:15 pm Post subject:

I didn't realise this but Ryanair is already a key shareholder in Aer Lingus (29.4%) and owns more shares in the company than the Irish government (25.4%).

Were you aware of that, John?

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John_from_Eurapart · Posted: Wed Dec 03, 2008 8:49 pm Post subject:

Yes, they took a 16% stake in the airline very shortly after the shares were floated. They probably bought at around €2 per share. They will no doubt have added to their stake as the price fell. Their offer was originally €2.80 a share so they are offering half as much (€1.40) this time around. In any event they get in the news again, gain more publicity and sell more flights.
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aaron · Posted: Tue Dec 16, 2008 1:13 pm Post subject:

Irish airline Aer Lingus has rejected a hostile 750m euro (£671.9m; $1bn) takeover bid from its rival Ryanair.

http://news.bbc.co.uk/1/hi/business/7785167.stm
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John_from_Eurapart · Posted: Tue Dec 16, 2008 8:11 pm Post subject:

The final decision is with the shareholders. The Irish Government has 25% and is unlikely to vote for the bid. A lot of the other shares are with Aer Lingus employees who could end up with poorer conditions of employment if the bid is approved. The outcome is likely to go against Ryanair, but they still get lots of publicity.
I think they will wait for the airline business to deteriorate further, then buy some wide bodied long haul aircraft at knock down prices and expand outside Europe.
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roman.observer · Posted: Fri Aug 07, 2009 5:16 pm Post subject:

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