New Ryanair bid for Aer Lingus rejected
The board of Aer Lingus Group has considered Ryanair's announcement that it intends to make another unsolicited offer for the whole of the issued and to be issued ordinary share capital of Aer Lingus not already owned by Ryanair at a price of €1.40 per share. The offer is considerably lower than that made in 2006.
Aer Lingus's statement noted that Ryanair's prior offer lapsed on 20 December 2006, having failed to achieve antitrust clearance. Following a thorough review, the European Commission prohibited Ryanair’s takeover of Aer Lingus on 27 June 2007. Ryanair is now appealing the European Commission prohibition. Consequently, this new lower offer is not capable of completion," according to Aer Lingus, which adds, "Aer Lingus remains a strong business with significant cash reserves and a robust long term future. The board believes that the offer significantly undervalues Aer Lingus. The board rejects this new offer and Aer Lingus shareholders are strongly advised to take no action in relation to the offer."