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| Ryanair lifts stake in Aer Lingus | Ryanair lifts stake in Aer Lingus |
| (about 2 hours later) | |
| Budget airline Ryanair has pushed ahead with its 1.48bn euro (£1bn; $1.9bn) takeover offer for Aer Lingus, by upping its holding in its Irish rival. | Budget airline Ryanair has pushed ahead with its 1.48bn euro (£1bn; $1.9bn) takeover offer for Aer Lingus, by upping its holding in its Irish rival. |
| Ryanair has now amassed a 19.2% stake in the firm, having said it held 16% when it launched the offer on Thursday. | Ryanair has now amassed a 19.2% stake in the firm, having said it held 16% when it launched the offer on Thursday. |
| Aer Lingus has spurned the offer saying it "significantly undervalues the group's businesses and attractive long-term growth potential". | |
| Irish government ministers will try to block the bid in court, a report says. | Irish government ministers will try to block the bid in court, a report says. |
| Complexity | Complexity |
| Analysts argue that the bid is a risky strategy and a change in direction for Ryanair. | Analysts argue that the bid is a risky strategy and a change in direction for Ryanair. |
| There is no point the government standing by and wringing its hands, like bystanders at a mugging Mick Halpenny, Siptu | There is no point the government standing by and wringing its hands, like bystanders at a mugging Mick Halpenny, Siptu |
| Chief executive Michael O'Leary was critical when Easyjet bought Go! in 2002, arguing that low-cost airlines should not make acquisitions as they added complexity and often costs. | Chief executive Michael O'Leary was critical when Easyjet bought Go! in 2002, arguing that low-cost airlines should not make acquisitions as they added complexity and often costs. |
| The takeover approach by Ryanair comes less than a week after Aer Lingus was privatised, with shares trading in Dublin and London. | The takeover approach by Ryanair comes less than a week after Aer Lingus was privatised, with shares trading in Dublin and London. |
| Ryanair is offering 2.80 euros per share for the shares it does not own - 27% more than the flotation price. | |
| The union Siptu said the Irish government should have never agreed to sell much of its 85.1% stake in the airline, and called on it to block the takeover by snapping up Aer Lingus shares. | The union Siptu said the Irish government should have never agreed to sell much of its 85.1% stake in the airline, and called on it to block the takeover by snapping up Aer Lingus shares. |
| AER LINGUS FACTS Low-cost airline focussing on passenger transportFleet of 35 aircraft 11 routes from Ireland to the UK57 routes from Ireland to mainland EuropeLong-haul flights to US and UAE Aer Lingus share price | AER LINGUS FACTS Low-cost airline focussing on passenger transportFleet of 35 aircraft 11 routes from Ireland to the UK57 routes from Ireland to mainland EuropeLong-haul flights to US and UAE Aer Lingus share price |
| "There is no point the government standing by and wringing its hands, like bystanders at a mugging," said Mick Halpenny, the union's national industrial secretary. | "There is no point the government standing by and wringing its hands, like bystanders at a mugging," said Mick Halpenny, the union's national industrial secretary. |
| "It is entirely responsible for this debacle and must act now, while the situation is retrievable." | "It is entirely responsible for this debacle and must act now, while the situation is retrievable." |
| 'Right decision' | 'Right decision' |
| But Irish transport minister Martin Cullen insisted privatisation - which was carried out to raise funds for investment - had been the correct move. | But Irish transport minister Martin Cullen insisted privatisation - which was carried out to raise funds for investment - had been the correct move. |
| "There's no question that the decision the government took is still the right decision," Mr Cullen said. | "There's no question that the decision the government took is still the right decision," Mr Cullen said. |
| The Irish government owns 28.3% of Aer Lingus and insists it will not sell its shares - though Ryanair has said it would be happy to go ahead with the government maintaining its stake. | The Irish government owns 28.3% of Aer Lingus and insists it will not sell its shares - though Ryanair has said it would be happy to go ahead with the government maintaining its stake. |
| According to the Irish Times, the government is considering mounting a legal challenge to the bid on competition grounds - referring it to the Competition Authority in Dublin. | According to the Irish Times, the government is considering mounting a legal challenge to the bid on competition grounds - referring it to the Competition Authority in Dublin. |
| A takeover would almost certainly be referred to the European competition regulators because a merged group would have a 78% share of the London to Dublin route. | A takeover would almost certainly be referred to the European competition regulators because a merged group would have a 78% share of the London to Dublin route. |
| RYANAIR FACTS Fleet of 111 aircraft Orders for a further 281 Boeing 737-800s372 routes 38.9 million passengers in the year to September 2006 Ryanair share price | RYANAIR FACTS Fleet of 111 aircraft Orders for a further 281 Boeing 737-800s372 routes 38.9 million passengers in the year to September 2006 Ryanair share price |
| Mr O'Leary said the move was a "unique opportunity" to form a "strong Irish airline", carrying more than 50 million passengers each year. | Mr O'Leary said the move was a "unique opportunity" to form a "strong Irish airline", carrying more than 50 million passengers each year. |
| If the bid was successful, he said the plan was to continue to operate the two airlines separately and compete on the 17 routes which both use. | If the bid was successful, he said the plan was to continue to operate the two airlines separately and compete on the 17 routes which both use. |
| However, some analysts say that it is inevitable that at least some parts of Aer Lingus will be run on the Ryanair model, and that there will be job cuts. | However, some analysts say that it is inevitable that at least some parts of Aer Lingus will be run on the Ryanair model, and that there will be job cuts. |