Ryanair may increase Aer Lingus offer price

Ryanair is said to be willing to raise its offer to acquire Aer Lingus but not to engage in a lengthy battle if shareholders continue to oppose the takeover bid.

Michael O’Leary, the chief executive of the Irish no-frills carrier, said to reporters last Friday that his airline would increase the current offer price of 1.40 euros per share, which is equivalent to around 750 million euros.

However, in a separate statement, Ryanair ruled out any increase that would raise the share price to two euros or more.

An Aer Lingus spokesperson commented that the deal was “unlikely to be capable of completion,” as there were doubts it would be by the European Commission, which blocked Ryanair’s last attempt at acquiring Aer Lingus, citing competition concerns.

“Aer Lingus continues to believe that the offer is diversionary and fatally flawed,” the spokesperson added. The airline maintains that it expects to show a profit for both 2008 and 2009.

Ryanair has already accumulated over 29 per cent of the shares in Aer Lingus, and has been attempting to acquire the carrier for the last two years. In December it made a second offer, in spite of management and employee opposition.

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