Ryanair mount second hostile bid for Aer Lingus

Today saw Ryanair launch a hostile bid for the balance of the Aer Lingus shares which are currently outside it's control. Today's offer at €1.40 per share is valued at €748m and represents a 25% increase over Friday's close but is still 50% less than the value of the first hostile bid in 2006.

Ryanair is currently Aer Lingus' single biggest shareholder with the Irish Government retaining a 25.1% stake holding.

Speaking in Dublin today Ryanair CEO Michael O'Leary said that this time round the bid stands a better chance of success than the original bid in 2006. He also said that Ryanair hasn't changed a plan to develop a trans Atlantic service but at the moment that plan is going nowhere and is separate from the plan to acquire Aer Lingus.

In response to the bid, Aer Lingus said that it would respond in due course, adding that shareholders are "strongly urged to take no action".

Speaking on RTE Radio, Minister for Transport, Noel Dempsey T.D. said that the Government would retain it's shareholding in Aer Lingus for "strategic reasons", including protection of the Heathrow slots and to "prevent hostile bids".