Aer Lingus rejects takeover bid
January 7, 2009Irish carrier Aer Lingus has rejected a takeover bid from a fellow budget airline.
The airline announced today (January 7) that a bid from Ryanair was rejected on the grounds that it "fundamentally undervalues the airline".
Both airlines have confirmed that they held a meeting regarding the potential takeover yesterday. However, Aer Lingus' shareholders were not prepared to accept the 750 million euro (£308,264,725) offer.
An official statement from the airline read: "Aer Lingus today confirmed they met yesterday with representatives of Ryanair.
"Aer Lingus explained to Ryanair at the meeting how the bid fundamentally undervalues the airline, its robust financial position, ignores the substantial competition issues and is therefore not capable of completion."
Ryanair currently owns a stake of approximately 30 per cent in Aer Lingus.
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