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| Ryanair in £1bn Aer Lingus offer | Ryanair in £1bn Aer Lingus offer |
| (10 minutes later) | |
| Budget airline Ryanair has launched a 1.48bn euros (£1bn; $1.9bn) bid to buy fellow Irish carrier Aer Lingus. | 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. | 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. | 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. | 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. | Ryanair said it had bought a 16% stake in Aer Lingus and was offering 2.80 euros per share for remaining stocks. |
| Global competitor | Global competitor |
| 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 |
| 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. |
| 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. | 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. | 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' | 'Compelling opportunity' |
| "This offer represents a unique opportunity to form one strong airline group for Ireland and for European consumers", Mr O'Leary said. | "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 737-800s372 routes 38.9 million passengers in the year to September 2006 href="http://newsvote.bbc.co.uk/1/shared/fds/hi/business/market_data/shares/3/24740/intraday.stm" class="">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. | "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". | 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. | 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. |
| Aer Lingus said it was "considering" the offer with its advisers. | 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. | "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. | However, the Irish government said it remained "fully and firmly committed to competition in aviation markets" and would not sell its stake. |