Ryanair to make fresh Aer Lingus bid?
01.05.11
Ryanair is making a third attempt to acquire rival Aer Lingus in a bid to create an all-Irish national champion, thisismoney.co.uk reports. Michael O'Leary, Ryanair chief executive, has approached the Irish Government in a bid to acquire its 25% stake in Aer Lingus.
The budget airline bought just over 29% of Aer Lingus in 2006, so if it were to acquire the Government's stake, it would have majority control. Mr O'Leary is reported to have decided to make the approach after a reports by the Irish Government last month that outlined plans to sell certain assets to reduce debt, one of which is its stake in Aer Lingus, now worth about €110m (£98m).
The European Commission blocked two previous attempts by Ryanair to acquire Aer Lingus because of competition issues. It is reported to still think that merging the two airlines would create a monopoly for Dublin flights, so if Ryanair is to succeed at the third attempt, he will have to convince the EC that a takeover is in the best interests of both airlines and the public.
Mr O'Leary is reported to believe a deal would give Aer Lingus a strong partner to secure its future and help to double the size of its short-haul fleet within a few years. The Irish Government, which has made it clear it wants to safeguard the route between Dublin and Heathrow, refused to comment on any talks, but said it was considering a sale of the airline. A spokesman told the news website: 'There is no rush and we want maximum value.'
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