European Court blocks Ryanair's Aer Lingus takeover
02.07.10
The European Court ruled yesterday that Ryanair's bid for rival Irish airline Aer Lingus should be blocked. However, it said that Ryanair could keep its 29.9% stake.
Ryanair acquired a stake in Aer Lingus after its privatisation in 2006, then notified the EC that it was seeking a full takeover. In 2007 the EC declared the takeover bid was incompatible with EU competition rules. Ryanair challenged that decision and in the meantime took its shareholding up to 29.9%.
The EC yesterday refused to allow Ryanair's hostile £1.48bn bid, saying it would create a monopoly on flights from Dublin Airport. Aer Lingus had wanted Ryanair to be forced to sell its shares, but this was rejected.
Ryanair chief executive Michael O'Leary said the ruling would not prevent it from making an offer for Aer Lingus in the future. However, he acknowledged any further bid would have to take account of the court's ruling, adding: ‘We have no immediate plans to make a third offer for Aer Lingus, which in any event would be unlikely to succeed unless the Irish government decides to sell its 25% stake.’
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