Irish carrier Aer Lingus has told shareholders to do nothing and wait for advice from the board after rival Ryanair again staged to takeover bid for the airline.
The latter has now made three unsolicited offers, with the latest valuing Aer Lingus at €694m.
The offer was at a 38.3% premium to Aer Lingus' closing price on Tuesday.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Aer Lingus said it would "make a statement in due course".
Ryanair already has a 30% stake in Aer Lingus, but instead of owning more it could end up with nothing.
On Monday, Ryanair's existing stake was referred to the UK's Competition Commission, which could demand it sells the holding.
In 2007 Ryanair's attempt to buy Aer Lingus was stopped by the European Commission.
Analysts said it was tough to see how the deal would get through this time since the combined airline would control 80% of traffic between Ireland and the UK.
However, investors seemed delighted, pushing the shares up 21% in early trading.
Ryanair also struck a bullish tone over its chances of success.
"Ryanair believes that any competition concerns ... can be addressed by Ryanair making appropriate remedies prior to the completion of this offer and by significant synergies and cost efficiencies resulting from this combination," the low-cost airline said in a statement.
-
Top financial priorities by age – and why a comfortable retirement may be out of reachThe cost of a comfortable retirement has risen, leaving it out of reach of even many of those who believe they are on track
-
How inheritance tax trick is helping families save ‘six-figure sums’Happy to skip a generation to save thousands on inheritance tax? A deed of variation could be the estate planning tool you need.
