Ryanair bid for Aer Lingus fails -21 Dec 2006

Ryanair’s £1 billion hostile bid for Aer Lingus has lapsed and any future bid may be terminated by a European Commission inquiry announced yesterday.

EC regulators said the proposed takeover raises “serious competition concerns and could give rise to higher fares”. The move rendered void the acceptance of Ryanair’s existing bid by Aer Lingus shareholders.

The Commission will report in May, when Ryanair will have 21 days to mount a new bid if the takeover is cleared.

The carrier expressed disappointment, but chief executive Michael O’Leary said: “Ryanair remains confident that its offer will win competition approval.”

Only last week Ryanair extended the deadline on its bid for its Irish rival to December 22. It has built its share in Aer Lingus to 25%, matching the size of the Irish government’s stake in the newly privatised carrier.

The Dublin government opposes the takeover and has refused to sell its stake, and the Irish Takeover Panel has reprimanded Ryanair for deficiencies in its offer document.

EC regulators said the proposed takeover raises “serious competition concerns and could give rise to higher fares”. The move rendered void the acceptance of Ryanair’s existing bid by Aer Lingus shareholders.

The Commission will report in May, when Ryanair will have 21 days to mount a new bid if the takeover is cleared.

The carrier expressed disappointment, but chief executive Michael O’Leary said: “Ryanair remains confident that its offer will win competition approval.”

Only last week Ryanair extended the deadline on its bid for its Irish rival to December 22. It has built its share in Aer Lingus to 25%, matching the size of the Irish government’s stake in the newly privatised carrier.

The Dublin government opposes the takeover and has refused to sell its stake, and the Irish Takeover Panel has reprimanded Ryanair for deficiencies in its offer document.