Ryanair Launches Aer Lingus Takeover Bid

Washington Post ^ | October 5, 2006 | Shawn Pogatchink

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DUBLIN, Ireland -- Ryanair Holdings PLC, Europe's largest discount airline, launched a takeover bid Thursday for its Irish rival, Aer Lingus Group PLC, in a deal that would value the formerly state-owned carrier at 1.48 billion euros ($1.88 billion).

Ryanair Chief Executive Michael O'Leary said his company had bought more than 16 percent of Aer Lingus over the past week and wanted to buy the rest at 2.80 euros ($3.55) a share, a 27 percent premium over Aer Lingus' Sept. 27 IPO share price of 2.20 euros ($2.79).

Aer Lingus shares soared 12 percent to 2.81 euros ($3.57) in frenetic trading on the Irish Stock Exchange, while Ryanair slid 2.9 percent to 8.45 euros ($10.72).

O'Leary pledged to keep Aer Lingus running as a separate company and to respect the powerful role of labor unions in the Dublin-based operation. He said Ryanair's offer, if accepted, would mean more than 220 million euros ($280 million) in profit for an Aer Lingus employee share-ownership trust _ or more than 60,000 euros ($76,000) per employee.

[COEXERJ145]

Ping to You.

[Paleo Conservative]

If you want on or off my aerospace ping list, please contact me by Freep mail.

[Righty_McRight]

Aer Lingus doesn't have much of a fleet.

6 Airbus A321 - 2 x CFM56-5B3
21 Airbus A320 - 2 x CFM56-5B4
4 Airbus A330-300 - 2 x GE CF680E1A3
3 Airbus A330-200 - 2 x GE CF680E1A4

http://www.flyaerlingus.com/cgi-bin/obel01im1/Corporate/fleet.jsp?BV_SessionID=@@@@1521102139.1160075993@@@@&BV_EngineID=cccladdjddkeimdcefecfigdffgdfkl.0&P_OID=-8064&Category=0

[Clemenza]

Air (Cunni) Lingus was one of the worst run airlines from the 1980s until about two years ago. I thought that management made some good moves, but can see why it is an acquisition target.

[cmsgop]

LOL!

[conservative in nyc]

I guess a total lack of fleet commonality isn't going to stop Ryanair from taking out its main Irish competition.