Aer Lingus rejects Ryanair's Euro 750 million bid
22 Dec 2008
Irish airline Aer Lingus has rejected a 750 million euros (£708 billion) takeover bid by low-cost rival Ryanair and said it expects to make a small profit in 2008-09.
Aer Lingus, already about 30 per cent owned by Ryanair, said the hostile offer significantly undervalued the group and that it could function better as an independent carrier.
The Irish government also owns 25.2 per cent of Aer Lingus.
The airline this week revised its 2009 earnings forecasts as it defended itself against Ryanair's hostile bid. Rather than losing €20 million (£18.6 million), Aer Lingus said it could return to profit next year, or break even.
Aer Lingus shares were up 2.9 per cent at 1.47 euros in afternoon trading, against Ryanair's bid offer of 1.40 euros made to other Aer Lingus shareholders last week.
The offer values the outstanding shares at 525 million euros and the entire airline at 750 million.
The current offer is nearly half of the earlier bid blocked by the European Commission two years ago.