Government rejects Ryanair offer

Ryanair admitted defeat this evening in it's attempt to takeover Aer Lingus after the Irish Government rejected the low cost airline's €1.40 per share offer for the former national airline.

In an emailed statement, Minister for Transport Noel Dempsey said that the offer 'greatly undervalues Aer Lingus'. He also said that the issue of competition was a 'major concern'.

Michael O'Leary, Ryanair CEO said that the Government's decision was "a wrong one", adding that "We don't think that it is in the best interests of Aer Lingus, which will be isolated as a small, peripheral loss making airline." Ryanair added however that they would "respect and abide by" the Governments decision not to sell it's 25%.