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Ryanair bids to buy Aer Lingus !

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  • Ryanair bids to buy Aer Lingus !

    MANFlyer
    Founding SQTalker
    Ryanair bids to buy Aer Lingus !
    « Thread started on: Oct 5th, 2006, 6:05pm »

    Didn't see this one coming. As FR are unlikely to be interested in LHR slots, they would get a few bob if they flogged them:

    Budget airline Ryanair has launched a 1.48bn euros (£1bn; $1.9bn) bid to buy fellow Irish carrier Aer Lingus.
    Ryanair chief Michael O'Leary said the move was a "unique opportunity" to form a "strong" Irish airline.

    If the bid is successful, Ryanair says it plans to continue to operate the two airlines separately. Aer Lingus said it was "considering" the offer. The Irish government, which owns at least 25.1% of Aer Lingus, said it would not sell its shares.

    However, Mr O'Leary said Ryanair would be "more than happy" for the government to retain its stake. News of the takeover approach pushed Aer Lingus shares up 11%, though Ryanair shares fell 2%. Ryanair said it had bought a 16% stake in Aer Lingus and was offering 2.80 euros per share for remaining stocks.

    Global competitor

    AER LINGUS FACTS
    Low-cost airline focussing on passenger transport
    Fleet of 35 aircraft
    11 routes from Ireland to the UK
    57 routes from Ireland to mainland Europe
    Long-haul flights to US and UAE


    Aer Lingus share price

    Earlier this week, Aer Lingus shares were floated on the stock market in London and Dublin. Shares began trading at 2.20 euros each, valuing the firm at 1.13bn euros.

    The flotation followed a decision by the Irish government to sell more than half of its 85.1% share in the company. Workers retained a 15% stake.

    If accepted, the Irish Government would get more than 500m euros from the sale and Aer Lingus employees would gain 200m euros, Ryanair said.

    'Compelling opportunity'

    "This offer represents a unique opportunity to form one strong airline group for Ireland and for European consumers", Mr O'Leary said.

    RYANAIR FACTS
    Fleet of 107 aircraft
    Orders for a further 281 Boeing 737-800s
    372 routes
    38.9 million passengers in the year to September 2006


    Ryanair share price

    "It's a compelling opportunity for the government, for the staff and more importantly for the Irish economy and tourism," the airline boss added.

    He said that a combined firm would carry more than 50 million passengers annually and would be "capable of competing on the European and World stage against other large European airline groups".

    Ryanair said that if the deal went through Aer Lingus would be able to cut the price of its short-haul fares and its fuel surcharge.

    It also said it would be able to improve Aer Lingus' long-haul service and its cargo division.

    Aer Lingus said it was "considering" the offer with its advisers.

    "The company is not in a position to make any further comment at this time," it added.

    However, the Irish government said it remained "fully and firmly committed to competition in aviation markets" and would not sell its stake.
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