Ryanair in bid for rival Aer Lingus

Irish airline says economic environment has changed since last bid rejected in 2006.

    Michael O'Leary said the economic and regulatory environment had changed since the last bid [AP]

    Michael O'Leary, Ryanair's chief executive, said the economic and regulatory environment had changed since the last bid.

    He said: "The European competition authorities are going to be reviewing so many airline mergers over the next three, six, 12 months, it makes sense to us to revisit this thing now."

    O'Leary said the takeover would create a fourth major European airline group after the creation of Air France-KLM, Lufthansa's purchase of Swiss and British Airways' planned tie-up with Iberia.

    Ryanair, which has already bought 29.82 per cent of Aer Lingus shares at an average $3.15, said the all-cash offer at $1.77 represented a 28 per cent premium over the average closing price for Aer Lingus shares in the 30 days to November 28.

    Aer Lingus' board rejected the bid on Monday.

    In a statement, the airline said: "The board rejects this new offer and Aer Lingus shareholders are strongly advised to take no action in relation to the offer."

    In London, shares in Aer Lingus ended the day 13.6 per cent higher at $1.60, below a session high of $1.71.

    Ryanair's shares traded 4.8 per cent lower at $3.52.

    The European commission declined to comment on the bid.

    SOURCE: Agencies


    YOU MIGHT ALSO LIKE

    Cricket World Cup 2019 Quiz: How many runs can you score?

    Cricket World Cup 2019 Quiz: How many runs can you score?

    Pick your team and answer as many correct questions in three minutes.

    Visualising every Saudi coalition air raid on Yemen

    Visualising every Saudi coalition air raid on Yemen

    Since March 2015, Saudi Arabia and a coalition of Arab states have launched more than 19,278 air raids across Yemen.

    Remembering Chernobyl

    Remembering Chernobyl

    The fallout from the Chernobyl nuclear power plant explosion remains as politicised as ever, 28 years on.