Low uptake for Ryanair offer

Today's deadline for acceptance of the Ryanair offer of €1.40 per share for the outstanding shares it doesn't currently own in Aer Lingus has been extended. Ryanair said today that it had secured acceptance for just 22,300 shares or 0.01% of Aer Lingus total share capital. The new deadline for acceptance is February 13. By 4pm today, Aer Lingus shares were down 1.7 % at €1.48 whilst Ryanair's were down 1.5% at €3.193.

In further developments late yesterday, Ryanair confirmed that they had referred the matter of Aer Lingus Chief Executive Dermot Mannion's 'failure fee' to the Takeover Panel. Ryanair claims that the agreement was in breach of stock exchange takeover rules and company law, as it was agreed without shareholder approval or the clearance of the market’s watchdog, the Takeover Panel. It now wants the Takeover Panel to investigate the matter.

Ryanair has also forwarded the Panel a copy of a letter sent by CEO Michael O'Leary to Aer Lingus Chairman, Colm Barrington seeking answers to questions raised by the arrangement. Specifically, Mr. O'Leary is questioning the timing of the agreement, pointing out that if it took place after December 1 when Ryanair submitted their latest bid then the Takeover Panel should have been notified.