Aer Lingus has rejected Ryanair’s £560m buy-out bid, saying the offer ‘undervalues’ the airline.
Ryanair made a surprise bid for the Irish carrier this week while it is under investigation by the Competition Commission over its current 30% stake. Ryanair has already tried to buy-out Aer Lingus twice and failed.
“The Board, having considered the offer with its advisers, believes the offer, even if it is capable of completion, undervalues Aer Lingus,” a spokesman said.
Ryanair’s CEO Michael O’Leary said a takeover of Aer Lingus is ‘necessary’ as the Dublin-based airline had become a “sub-scale, peripheral EU carrier which has no long-term independent future”, due to its failure to merge with other airlines. Aer Lingus is currently part-owned by the Irish government.
“This offer represents a significant opportunity to combine Aer Lingus with Ryanair, to form one strong Irish airline group capable of competing with Europe’s other major airline groups,” said Ryanair’s CEO, Michael O’Leary.
“Etihad recently invested in Aer Lingus and there are reports that it has a strong interest to acquire the government’s stake, and since the Irish government has decided to sell this stake, we believe now is the time to focus on the right long-term strategic partner for Aer Lingus,” he added.
