Menu
02/12/2008
Government Looks Seriously At Aer Lingus Offer
The Irish Finance Minister Brian Lenihan (pictured) is said to be having a "serious look" at a fresh multi-million euro offer for Aer Lingus from its rival Ryanair - even though the airline itself has publicly ruled the bid out.
Ryanair boss, Michael O'Leary has been actively trying to take over Aer Lingus for sometime, offering €1.5 billion for the airline just two years ago.
In his most recent offer however, Mr O'Leary has chopped his offer by half, to €750 million.
Aer Lingus is currently embroiled in a series of cost-cutting initiatives and is working with the trade unions in an effort to agree job losses to face up to an expected major shortfall in turnover for this year.
Compounded by a less than healthy bank balance, the government is therefore said to be considering the offer - even though it's much less thanm previously on the table.
Government currently holds a 25% share in the airline and would make €188 million from the proposed deal, but according to reports, some ministers are saying the offer needs to be much higher.
To add to the confusion this time round, Aer Lingus itself yesterday rejected what it described as a "hostile takeover bid from Ryanair", dismissing the offer as significantly undervaluing the airline.
However, Finance Minister Brian Lenihan and his colleague, Transport Minister Noel Dempsey, are expected to meet Mr O'Leary to discuss his plans in the near future, as the possible deal seems increasingly likely.
However, the cut-price deal would be a severe embarrassment as the original €1.5 billion deal had been rejected as even then it "seriously undervalued the company".
Making the offer, Ryanair's millionaire boss Michael O'Leary said: "The world has changed dramatically over the past two years, as high oil prices and deep recession have caused a flood of airline bankruptcies, consolidations and capacity cutbacks."
Ryanair already owns 29.82% of Aer Lingus with other major shareholders including the Irish government and Aer Lingus employees, both of which rejected the takeover offer last time.
On Monday, before the offer was rejected, Ryanair shares closed down 4.8% at €2.78. Aer Lingus shares were up 13.6% at €1.27.
Ryanair Flies Into Takeover Turbulence
(DW)
Ryanair boss, Michael O'Leary has been actively trying to take over Aer Lingus for sometime, offering €1.5 billion for the airline just two years ago.
In his most recent offer however, Mr O'Leary has chopped his offer by half, to €750 million.
Aer Lingus is currently embroiled in a series of cost-cutting initiatives and is working with the trade unions in an effort to agree job losses to face up to an expected major shortfall in turnover for this year.
Compounded by a less than healthy bank balance, the government is therefore said to be considering the offer - even though it's much less thanm previously on the table.
Government currently holds a 25% share in the airline and would make €188 million from the proposed deal, but according to reports, some ministers are saying the offer needs to be much higher.
To add to the confusion this time round, Aer Lingus itself yesterday rejected what it described as a "hostile takeover bid from Ryanair", dismissing the offer as significantly undervaluing the airline.
However, Finance Minister Brian Lenihan and his colleague, Transport Minister Noel Dempsey, are expected to meet Mr O'Leary to discuss his plans in the near future, as the possible deal seems increasingly likely.
However, the cut-price deal would be a severe embarrassment as the original €1.5 billion deal had been rejected as even then it "seriously undervalued the company".
Making the offer, Ryanair's millionaire boss Michael O'Leary said: "The world has changed dramatically over the past two years, as high oil prices and deep recession have caused a flood of airline bankruptcies, consolidations and capacity cutbacks."
Ryanair already owns 29.82% of Aer Lingus with other major shareholders including the Irish government and Aer Lingus employees, both of which rejected the takeover offer last time.
On Monday, before the offer was rejected, Ryanair shares closed down 4.8% at €2.78. Aer Lingus shares were up 13.6% at €1.27.
Ryanair Flies Into Takeover Turbulence
(DW)
Related Irish News Stories
Click here for the latest headlines.
02 June 2009
Ryanair Flies Low
The budget airline Ryanair has revealed financial returns showing a major nosedive in operating profits. Ryanair plunged into the red by €169.2 million (£145.9m) in the year to March after being hit with a 59% hike in its fuel bill.
Ryanair Flies Low
The budget airline Ryanair has revealed financial returns showing a major nosedive in operating profits. Ryanair plunged into the red by €169.2 million (£145.9m) in the year to March after being hit with a 59% hike in its fuel bill.
19 October 2007
Ryanair Hits Out As Aer Lingus Takes Flight
With Aer Lingus proceeding with its plan to close the Shannon-Heathrow route and open a new Belfast hub instead, its biggest rival (and ironically, its biggest shareholder), Ryanair is now set to provide three additional daily flights to London to ensure Shannon Airport's capacity and traffic does not fall as a result of this Aer Lingus closure.
Ryanair Hits Out As Aer Lingus Takes Flight
With Aer Lingus proceeding with its plan to close the Shannon-Heathrow route and open a new Belfast hub instead, its biggest rival (and ironically, its biggest shareholder), Ryanair is now set to provide three additional daily flights to London to ensure Shannon Airport's capacity and traffic does not fall as a result of this Aer Lingus closure.
09 December 2008
Aer Lingus Knuckles Down Over Ryanair Offer
Aer Lingus is fortifying its defences against the bold approach from Ryanair last week. The airline's Chief Executive Dermot Mannion has announced the recent union agreement will mean the loss predicted for the end of year could be turned around due to its expected €50 million in cuts.
Aer Lingus Knuckles Down Over Ryanair Offer
Aer Lingus is fortifying its defences against the bold approach from Ryanair last week. The airline's Chief Executive Dermot Mannion has announced the recent union agreement will mean the loss predicted for the end of year could be turned around due to its expected €50 million in cuts.
18 July 2012
Aer Lingus Want Shareholders To Reject Ryanair Takeover Bid
Aer Lingus has called on its shareholders to reject the Ryanair takeover offer. Ryanair submitted a formal takeover for Aer Lingus yesterday with an offer of €694m. However, Aer Lingus has said it believes Ryanair’s offer "fundamentally undervalues Aer Lingus and represents a significant discount to the intrinsic value of the business".
Aer Lingus Want Shareholders To Reject Ryanair Takeover Bid
Aer Lingus has called on its shareholders to reject the Ryanair takeover offer. Ryanair submitted a formal takeover for Aer Lingus yesterday with an offer of €694m. However, Aer Lingus has said it believes Ryanair’s offer "fundamentally undervalues Aer Lingus and represents a significant discount to the intrinsic value of the business".
05 November 2013
Concerns Raised Over Threatened Aer Lingus Strike
Fianna Fáil Spokesperson on Transport and Tourism, Timmy Dooley TD, has voiced his concern at the news that 91% of IMPACT cabin crew members at Aer Lingus voted in favour of industrial action.
Concerns Raised Over Threatened Aer Lingus Strike
Fianna Fáil Spokesperson on Transport and Tourism, Timmy Dooley TD, has voiced his concern at the news that 91% of IMPACT cabin crew members at Aer Lingus voted in favour of industrial action.
-
Ireland WeatherThis Evening and Tonight:Frequent, often heavy showers of rain, sleet and snow will affect most parts this evening and overnight, but are likely to be most frequent across the northeast. Minimum temperature -1 °C.
