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| Version 12 | Version 13 |
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| Aer Lingus rejects Ryanair offer | Aer Lingus rejects Ryanair offer |
| (about 5 hours later) | |
| Irish airline Aer Lingus has rejected a 1.48bn euro (£1bn) takeover offer from budget rival Ryanair. | |
| The board of Aer Lingus said the bid "significantly undervalues the group's businesses and attractive long term growth potential". | The board of Aer Lingus said the bid "significantly undervalues the group's businesses and attractive long term growth potential". |
| Proceedings in the Irish parliament, the Dail, were suspended earlier in the day as politicians argued the issue. | Proceedings in the Irish parliament, the Dail, were suspended earlier in the day as politicians argued the issue. |
| A merged group would have a 78% share of the London-Dublin route, raising concerns over competition issues. | A merged group would have a 78% share of the London-Dublin route, raising concerns over competition issues. |
| Analysts have said the competition issues could be overcome if some routes were shed, but added that Ryanair would probably have to raise its bid significantly. | Analysts have said the competition issues could be overcome if some routes were shed, but added that Ryanair would probably have to raise its bid significantly. |
| Government stake | Government stake |
| Ryanair chief Michael O'Leary said the move was a "unique opportunity" to form a "strong Irish airline", carrying more than 50 million passengers each year. | Ryanair chief Michael O'Leary said the move was a "unique opportunity" to form a "strong Irish airline", carrying more than 50 million passengers each year. |
| If the bid was successful, he said the plan was to continue to operate the two airlines separately and compete on the 17 routes which both use. | If the bid was successful, he said the plan was to continue to operate the two airlines separately and compete on the 17 routes which both use. |
| It's a compelling opportunity for the government, for the staff and more importantly for the Irish economy and tourism Michael O'Leary, Ryanair chief executive From no-frills to flag carrier | It's a compelling opportunity for the government, for the staff and more importantly for the Irish economy and tourism Michael O'Leary, Ryanair chief executive From no-frills to flag carrier |
| The Irish government, which owns 28.3% of Aer Lingus, said it would not sell its shares. | The Irish government, which owns 28.3% of Aer Lingus, said it would not sell its shares. |
| Mr O'Leary said Ryanair would be "more than happy" for the government to retain its stake. | Mr O'Leary said Ryanair would be "more than happy" for the government to retain its stake. |
| Transport minister Martin Cullen was due to answer special questions on the takeover approach in the Dail on Thursday afternoon. | Transport minister Martin Cullen was due to answer special questions on the takeover approach in the Dail on Thursday afternoon. |
| Morning proceedings had been halted after Taoiseach Bertie Ahern refused opposition requests for a debate on the subject. | Morning proceedings had been halted after Taoiseach Bertie Ahern refused opposition requests for a debate on the subject. |
| He said the government was committed to competition in the industry, but that the deal would need regulatory clearance from either the Irish authorities or the European Commission. | He said the government was committed to competition in the industry, but that the deal would need regulatory clearance from either the Irish authorities or the European Commission. |
| 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. | 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. |
| Global competitor | Global competitor |
| Ryanair has bought a 16% stake in Aer Lingus and is offering 2.80 euros per share for the remaining shares. | Ryanair has bought a 16% stake in Aer Lingus and is offering 2.80 euros per share for the remaining shares. |
| News of the takeover approach pushed Aer Lingus shares up 15%, though Ryanair shares fell 1%. | News of the takeover approach pushed Aer Lingus shares up 15%, though Ryanair shares fell 1%. |
| AER LINGUS FACTS Low-cost airline focussing on passenger transportFleet of 35 aircraft 11 routes from Ireland to the UK57 routes from Ireland to mainland EuropeLong-haul flights to US and UAE Aer Lingus share price | AER LINGUS FACTS Low-cost airline focussing on passenger transportFleet of 35 aircraft 11 routes from Ireland to the UK57 routes from Ireland to mainland EuropeLong-haul flights to US and UAE Aer Lingus share price |
| The flotation followed a decision by the Irish government to sell much of its 85.1% share in the company. Workers now have a 9.85% stake. | The flotation followed a decision by the Irish government to sell much of its 85.1% share in the company. Workers now have a 9.85% 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. | If accepted, the Irish Government would get more than 500m euros from the sale and Aer Lingus employees would gain 200m euros, Ryanair said. |
| Shedding routes | Shedding routes |
| The second largest union at Aer Lingus, Impact, is opposing the proposed takeover saying a stand-alone Aer Lingus was "in the best interests of the company, the country, passengers and staff". | The second largest union at Aer Lingus, Impact, is opposing the proposed takeover saying a stand-alone Aer Lingus was "in the best interests of the company, the country, passengers and staff". |
| "There are clearly significant competition issues involved in the proposed takeover, which would create a near-monopoly on passenger air travel in and out of Ireland with obvious adverse implications for passengers and society," a spokesman added. | "There are clearly significant competition issues involved in the proposed takeover, which would create a near-monopoly on passenger air travel in and out of Ireland with obvious adverse implications for passengers and society," a spokesman added. |
| RYANAIR FACTS Fleet of 107 aircraft Orders for a further 281 Boeing 737-800s372 routes 38.9 million passengers in the year to September 2006 Ryanair share price | RYANAIR FACTS Fleet of 107 aircraft Orders for a further 281 Boeing 737-800s372 routes 38.9 million passengers in the year to September 2006 Ryanair share price |
| 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. | 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. | It also said it would be able to improve Aer Lingus' long-haul service and its cargo division. |
| The deal could get clearance by competition regulators, but some routes may have to be shed, said Exane BNP Paribas analyst Nick van den Brul. | The deal could get clearance by competition regulators, but some routes may have to be shed, said Exane BNP Paribas analyst Nick van den Brul. |
| "There would almost certainly be a competition investigation by the EU but it doesn't look insurmountable," he said. | "There would almost certainly be a competition investigation by the EU but it doesn't look insurmountable," he said. |