Aer Lingus urges shareholders to reject third Ryanair bid

on 24/08/2012 08:49:49

Aer Lingus has urged its shareholders to reject another Ryanair offer for the airline.

In a statement, the airline said the offer "fundamentally undervalues Aer Lingus and represents a significant discount to the intrinsic value of the business".

The airline's board "unanimously recommends" that shareholders take no action in relation to the offer.

It also urged shareholders not to sign any document sent by Ryanair or its advisers.

This is Ryanair's third bid for the airline and amounts to €694m.

The low-cost airline has had other offers were rejected by the European Commmission which is to decide on this latest bid by August 29.

Today's statement from Aer Lingus said that the company ''is a strong and profitable airline with a proven business model; a strong balance sheet; and an internationally recognised and valued brand''.

''The Board's unanimous view is that Ryanair's offer to acquire control of Aer Lingus for €1.30 per share fundamentally undervalues Aer Lingus and represents a significant discount to the intrinsic value of the business.

''Based on careful consideration of the issues, and extensive legal and financial advice, the board remains of the view that Ryanair's offer is not in the interests of shareholders, fundamentally undervalues the business and, due to the scale and extent of competition issues, is likely once more to be prohibited by the European Commission.''