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07/09/2011
Govt To Sell Stake In Are Lingus?
The Irish Government is considering putting its 25% stake in the national airline, Aer Lingus, on the market.
In a statement the Transport Minister Leo Varadkar has said that he no longer considers the airline asset as strategic.
However the Minister said: "No formal decision has been made yet."
"What I can say is that that stake in the past was held for strategic reasons and having studied the matter over the summer I don't think that really stands any more."
A government-sponsored report published in April this year recommended that the state sell its 25% stake in the airline as soon as is opportune.
It also named the Dublin Airport Authoritiy (DAA) and the Irish Aviation Authority as possible privatisation targets.
However rival airline Ryanair have hinted interest in purchasing the State's share.
Ryanair spokesman Stephen McNamara said: "We previously said that the Government would eventually sell Aer Lingus. Obviously we would be open to talking to them if they were to sell."
Although the airline said it was happy to confirm that it would not bid for the holding if the government felt that such a move would be unwelcome
Ryanair already owns 29.4% of the Aer Lingus company – just shy of the level which prompts an automatic takeover bid under company law. The budget carrier has already had two audacious bids rejected.
Ryanair acquired a partial stake in Aer Lingus after its privatisation in 2006, then notified the European Commission that it was seeking a takeover.
One major concern over a takeover was that the Aer Lingus brand could lose its valuable landing slots in London's Heathrow Airport and the State would miss a key tourism and business link to the British capital.
The Minister explained: "We have a 25% stake. You actually need 30% to block any changes on slots."
This was on foot of the European Court of Justice ruling that Ryanair's earlier bid for Aer Lingus should be blocked.
The court ruled at the time that Ryanair could keep its 29.9% stake but refused to allow Ryanair's hostile bid saying it would create a monopoly for flights from Dublin airport.
Ryanair Chief Executive Michael O'Leary said the ruling would not prevent the low-cost carrier from making a future offer for Aer Lingus.
(LB/BMcC)
In a statement the Transport Minister Leo Varadkar has said that he no longer considers the airline asset as strategic.
However the Minister said: "No formal decision has been made yet."
"What I can say is that that stake in the past was held for strategic reasons and having studied the matter over the summer I don't think that really stands any more."
A government-sponsored report published in April this year recommended that the state sell its 25% stake in the airline as soon as is opportune.
It also named the Dublin Airport Authoritiy (DAA) and the Irish Aviation Authority as possible privatisation targets.
However rival airline Ryanair have hinted interest in purchasing the State's share.
Ryanair spokesman Stephen McNamara said: "We previously said that the Government would eventually sell Aer Lingus. Obviously we would be open to talking to them if they were to sell."
Although the airline said it was happy to confirm that it would not bid for the holding if the government felt that such a move would be unwelcome
Ryanair already owns 29.4% of the Aer Lingus company – just shy of the level which prompts an automatic takeover bid under company law. The budget carrier has already had two audacious bids rejected.
Ryanair acquired a partial stake in Aer Lingus after its privatisation in 2006, then notified the European Commission that it was seeking a takeover.
One major concern over a takeover was that the Aer Lingus brand could lose its valuable landing slots in London's Heathrow Airport and the State would miss a key tourism and business link to the British capital.
The Minister explained: "We have a 25% stake. You actually need 30% to block any changes on slots."
This was on foot of the European Court of Justice ruling that Ryanair's earlier bid for Aer Lingus should be blocked.
The court ruled at the time that Ryanair could keep its 29.9% stake but refused to allow Ryanair's hostile bid saying it would create a monopoly for flights from Dublin airport.
Ryanair Chief Executive Michael O'Leary said the ruling would not prevent the low-cost carrier from making a future offer for Aer Lingus.
(LB/BMcC)
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Ryanair Hits Out As Aer Lingus Takes Flight
With Aer Lingus proceeding with its plan to close the Shannon-Heathrow route and open a new Belfast hub instead, its biggest rival (and ironically, its biggest shareholder), Ryanair is now set to provide three additional daily flights to London to ensure Shannon Airport's capacity and traffic does not fall as a result of this Aer Lingus closure.
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Aer Lingus Want Shareholders To Reject Ryanair Takeover Bid
Aer Lingus has called on its shareholders to reject the Ryanair takeover offer. Ryanair submitted a formal takeover for Aer Lingus yesterday with an offer of €694m. However, Aer Lingus has said it believes Ryanair’s offer "fundamentally undervalues Aer Lingus and represents a significant discount to the intrinsic value of the business".
02 December 2008
Government Looks Seriously At Aer Lingus Offer
The Irish Finance Minister Brian Lenihan (pictured) is said to be having a "serious look" at a fresh multi-million euro offer for Aer Lingus from its rival Ryanair - even though the airline itself has publicly ruled the bid out. Ryanair boss, Michael O'Leary has been actively trying to take over Aer Lingus for sometime, offering €1.
Government Looks Seriously At Aer Lingus Offer
The Irish Finance Minister Brian Lenihan (pictured) is said to be having a "serious look" at a fresh multi-million euro offer for Aer Lingus from its rival Ryanair - even though the airline itself has publicly ruled the bid out. Ryanair boss, Michael O'Leary has been actively trying to take over Aer Lingus for sometime, offering €1.
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Ireland WeatherThis Evening and Tonight:A fine end to the day with some evening sunshine. It remains mainly dry overnight with a touch of frost or fog patches possible in places. However, cloud is expected to increase towards dawn with the odd light shower. Minimum temperature 2 °C.
