O’Leary says BA most likely buyer for Aer Lingus
30.09.11
British Airways is the most likely buyer of the Irish Government's 25% stake in Aer Lingus, Michael O'Leary, the CEO its largest shareholder Ryanair, said yesterday. Willie Walsh, the CEO of BA parent International Airlines Group has previously said he is not planning to bid for the stake because of Aer Lingus' pension deficit.
Mr O'Leary said: ‘It is far more likely that there will be a trade buyer. I think the obvious trade buyer would be BA or IAG.' He said Ryanair's almost 30% stake could sell at up to €1 per share, a strong premium over the current price of 68 cents. The main stumbling block to a sale is a deficit at an Aer Lingus' employee pension fund, which at over €400 million is larger than the company's market capitalization of around €340 million.
He said that any buyer would likely break up Aer Lingus to separate its valuable Heathrow Airport slots and profit-making transatlantic business from its loss making short haul business.
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