Ryanair / Aer Lingus battle moves to CFI

The legal wrangling concerning the Ryanair bid to take control of Aer Lingus moved to the Court of First Instance in Luxembourg today with lawyers for Ryanair challenging the European Commission's refusal to allow Ryanair take control of the entire Aer Lingus share capital.

During 2006 Ryanair built up just over 19% shareholding in Aer Lingus. In October of that year it launched a bid for the remainder of the Aer Lingus shareholding and notified the European Commission of it's intententions as the end of that month. During the bid period the shareholding grew to over 25% by November.

In June 2007 the Commission ruled that the proposed takeover would have violated the concept of the common market and refused to sanction the move. Ryanair is now challenging this decision by the Commission having grown it's shareholding in the interim to the present figure of 29.4%.

It is this case which was heard today.

In October 2007 the Commission issued a further ruling in relation to a request by Aer Lingus to force Ryanair to give up it's shareholding in Aer Lingus. The Commission ruled that since Ryanair hadn't followed through with it's intended plan to acquire the remaining share capital it (the Commission) didn't have the power to issue a ruling.

It is this second case which will be heard at the CFI tomorrow.