Irish Government Scuttles Aer Lingus Bid

Source: Aviation Week

"For the second time, Ryanair has failed in an attempt to take over Aer Lingus. Aer Lingus welcomed the move, and also announced plans to expand ties with United that could lead to a broad joint-venture type of arrangement. Irish Transport Minister Noel Dempsey said the “government took the view that the Ryanair offer greatly undervalues Aer Lingus. Ryanair had indicated it might up its bid, but the government noted price was only one consideration. The Irish government holds 25.12% of Aer Lingus shares, so its buy-in was critical. Ryanair repeatedly made the case that the government could use the money from the sale for priority programs." Next.