Budget airline Ryanair has announced plans to re-bid for Irish rival Aer Lingus following the lapse of its current takeover bid, which abruptly came to an end when the European Commission (EC) referred it to Phase II.
The referral meant that in accordance with the takeover rules, the hostile bid ended with immediate effect.
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
"In addition to the European Commission's in-depth investigation, the UK Competition Commission also continues to investigate the harmful effects of Ryanair's minority shareholding in Aer Lingus, which is contrary to the interests of consumers and the majority of our shareholders."
In a statement Ryanair told investors that any further offer will require the consent of the takeover panel to reverse the rules on making another bid within 12 months from August 29th, the day the offer lapsed.
The offer, which was Ryanair's third tilt at Aer Lingus in six years, "fundamentally undervalues" the company, Aer Lingus told its investors last week.
Ryanair, which is Aer Lingus's largest shareholder, launched the bid which valued the company at €694m back in June.
Ryanair's share price fell 1.64% to €4.13 by 14:13.
NR
-
5 alternatives to Reeves’ inheritance tax raid on rural Britain as families face ‘splitting up or selling’ farmsInheritance tax limits are now so low they attack small working family farms rather than just going after tax loopholes, one Cotswolds farmer has said
-
High earners at risk of £65k retirement shockHigh earners could face some of the biggest pension shortfalls when they retire, as the cost of maintaining an expensive lifestyle could erode their retirement savings
