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Aer Lingus Rejects Ryanair Takeover Bid  
User currently offlineClickhappy From United States of America, joined Sep 2001, 9623 posts, RR: 68
Posted (7 years 9 months 3 weeks 2 days 20 hours ago) and read 2775 times:
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DUBLIN, Ireland - Aer Lingus has formally rejected a takeover bid by rival airline Ryanair, telling shareholders in its defense document published Friday that the offer places a low value on the formerly state-controlled carrier.

http://news.yahoo.com/s/ap/20061103/...n_bi_ge/ireland_aer_lingus_ryanair

17 replies: All unread, jump to last
 
User currently offlinePe@rson From United Kingdom, joined Jan 2001, 19204 posts, RR: 52
Reply 1, posted (7 years 9 months 3 weeks 2 days 20 hours ago) and read 2781 times:

Well, that's surprising, isn't it?


"Everyone writing for the Telegraph knows that the way to grab eyeballs is with Ryanair and/or sex."
User currently offlineTrekster From , joined Dec 1969, posts, RR:
Reply 2, posted (7 years 9 months 3 weeks 2 days 20 hours ago) and read 2767 times:

woohoo


Stick that Ryanair lol
There was no way EI were going to sell the FR


User currently offlineN328KF From United States of America, joined May 2004, 6484 posts, RR: 3
Reply 3, posted (7 years 9 months 3 weeks 2 days 20 hours ago) and read 2757 times:

Quoting Trekster (Reply 2):
There was no way EI were going to sell the FR

So what, you think that magically brings this thing to an end? RyanAir has plenty of options left.



When they call the roll in the Senate, the Senators do not know whether to answer 'Present' or 'Not guilty.' T.Roosevelt
User currently offlinePe@rson From United Kingdom, joined Jan 2001, 19204 posts, RR: 52
Reply 4, posted (7 years 9 months 3 weeks 2 days 20 hours ago) and read 2757 times:

Quoting Trekster (Reply 2):
Stick that Ryanair lol

It can still buy more shares, thereby eventually perhaps gaining more than 50% of them.



"Everyone writing for the Telegraph knows that the way to grab eyeballs is with Ryanair and/or sex."
User currently offlineTrekster From , joined Dec 1969, posts, RR:
Reply 5, posted (7 years 9 months 3 weeks 2 days 20 hours ago) and read 2745 times:

I know FR will keep trying, but there trying to take over a mainline airline, something a low cost has not done before. It just wont work, there will be strikes as they have already said they will lay people off. It wont work, and will end in a mess

User currently offlineSK736 From United Kingdom, joined Aug 2006, 514 posts, RR: 0
Reply 6, posted (7 years 9 months 3 weeks 2 days 20 hours ago) and read 2745 times:
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Quoting N328KF (Reply 3):
So what, you think that magically brings this thing to an end? RyanAir has plenty of options left.

It does not have plenty of options left. It now has only three options - to acquire enough shares on the open market to gain control, to launch a hostile takeover bid or to end its bid to acquire Aer Lingus.


User currently offlineN328KF From United States of America, joined May 2004, 6484 posts, RR: 3
Reply 7, posted (7 years 9 months 3 weeks 2 days 20 hours ago) and read 2745 times:

Quoting SK736 (Reply 6):
It does not have plenty of options left. It now has only three options - to acquire enough shares on the open market to gain control, to launch a hostile takeover bid or to end its bid to acquire Aer Lingus.

That seems like plenty of options to me. And there are many ways to achieve the former. However, you are incorrect -- it does not have to acquire enough shares; It merely has to convince the owners of those shares to vote its way.



When they call the roll in the Senate, the Senators do not know whether to answer 'Present' or 'Not guilty.' T.Roosevelt
User currently offlineBeech19 From United States of America, joined Jul 2006, 936 posts, RR: 4
Reply 8, posted (7 years 9 months 3 weeks 2 days 20 hours ago) and read 2732 times:

Quoting SK736 (Reply 6):
It does not have plenty of options left. It now has only three options - to acquire enough shares on the open market to gain control, to launch a hostile takeover bid or to end its bid to acquire Aer Lingus.

Buying up all those shares would just be too expensive... I'm all for the hostile takeover...  duck 



KPAE via KBVY
User currently offlineSK736 From United Kingdom, joined Aug 2006, 514 posts, RR: 0
Reply 9, posted (7 years 9 months 3 weeks 2 days 20 hours ago) and read 2693 times:
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Quoting N328KF (Reply 7):
However, you are incorrect -- it does not have to acquire enough shares; It merely has to convince the owners of those shares to vote its way.

No, it has to acquire the shares otherwise it won't own them will it.


User currently offlineN328KF From United States of America, joined May 2004, 6484 posts, RR: 3
Reply 10, posted (7 years 9 months 3 weeks 2 days 20 hours ago) and read 2663 times:

Quoting SK736 (Reply 9):
No, it has to acquire the shares otherwise it won't own them will it.

That's not the sequence of events. This is:
  • Convince the holders of the balance of shares required to either tender their shares or vote in RyanAir's favor for a proxy fight
  • RyanAir fires the board
  • RyanAir installs its own board
  • RyanAir uses the board to fire Sharman and Mannion.
  • RyanAir uses its board to force a merger agreement.
  • RyanAir exercises a formal tender for the remaining shares.
  • RyanAir gains regulatory approval.
  • RyanAir closes the transaction.



When they call the roll in the Senate, the Senators do not know whether to answer 'Present' or 'Not guilty.' T.Roosevelt
User currently offlineSK736 From United Kingdom, joined Aug 2006, 514 posts, RR: 0
Reply 11, posted (7 years 9 months 3 weeks 2 days 19 hours ago) and read 2642 times:
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Quoting N328KF (Reply 10):
That's not the sequence of events. This is:
Convince the holders of the balance of shares required to either tender their shares or vote in RyanAir's favor for a proxy fight
RyanAir fires the board
RyanAir installs its own board
RyanAir uses the board to fire Sharman and Mannion.
RyanAir uses its board to force a merger agreement.
RyanAir exercises a formal tender for the remaining shares.
RyanAir gains regulatory approval.
RyanAir closes the transaction.

No, you are wrong. Ryanair (note it is Ryanair not RyanAir) has only the three options I outlined previously.


User currently offlinePlanemanofnz From New Zealand, joined Sep 2005, 1676 posts, RR: 0
Reply 12, posted (7 years 9 months 3 weeks 2 days 19 hours ago) and read 2634 times:
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I am very glad that this has happened. This would have been absolutely terrible for Aer Lingus and it's customers.

I see that EI is agressively always adding routes to it's short haul network, but they should develop a bit more long-haul so they have something to fall back on if god forbid FR somehow get control of EI.

Good news anyhow!


User currently offlineN328KF From United States of America, joined May 2004, 6484 posts, RR: 3
Reply 13, posted (7 years 9 months 3 weeks 2 days 19 hours ago) and read 2622 times:

Quoting SK736 (Reply 11):
No, you are wrong. Ryanair (note it is Ryanair not RyanAir) has only the three options I outlined previously.

You're either not following me, or you're naive. I just illustrated the sequence of events (not a choice of events) where by RyanAir could win. As RyanAir already owns almost 20% of Aer Lingus, they only need to convince 30% of the remaining shares to vote their way. As the government owns about 29%, this still leaves a huge chunk open for RyanAir to buy or sway.



When they call the roll in the Senate, the Senators do not know whether to answer 'Present' or 'Not guilty.' T.Roosevelt
User currently offlineEgmcman From United Kingdom, joined Jun 2005, 898 posts, RR: 8
Reply 14, posted (7 years 9 months 3 weeks 2 days 19 hours ago) and read 2617 times:

Given the government and employee ownership it was never going to happen they would have to give up a lot for to get through regularity hurdles.

User currently offlineN328KF From United States of America, joined May 2004, 6484 posts, RR: 3
Reply 15, posted (7 years 9 months 3 weeks 2 days 19 hours ago) and read 2611 times:

Quoting Egmcman (Reply 14):
Given the government and employee ownership it was never going to happen they would have to give up a lot for to get through regularity hurdles.

The government and employees together only own about 30%. I don't know why you think this is dead.

Regulatory authority in this case is with the EU, not with the Irish government.

There seems to be a lot of people who have an emotional stake in this: Whether it's denial or wishful thinking, I'm not sure. But there are other corporate battles which have been won with slimmer threads.



When they call the roll in the Senate, the Senators do not know whether to answer 'Present' or 'Not guilty.' T.Roosevelt
User currently offlineJWMD123 From Ireland, joined May 2006, 867 posts, RR: 0
Reply 16, posted (7 years 9 months 3 weeks 2 days 19 hours ago) and read 2603 times:

Quoting N328KF (Reply 15):
The government and employees together only own about 30%. I don't know why you think this is dead.

Regulatory authority in this case is with the EU, not with the Irish government.

There seems to be a lot of people who have an emotional stake in this: Whether it's denial or wishful thinking, I'm not sure. But there are other corporate battles which have been won with slimmer threads.

The government own 25%, the Employee share ownership owns 15%, the pilots of EI bought share independently and through pension scheme totalling near 5% and a wealthy Irish Businessman who is not a big fan of MOL owns 2.5%.

This does not leave a lot of shareholders in EI that FR can 'influence'


User currently offlinePe@rson From United Kingdom, joined Jan 2001, 19204 posts, RR: 52
Reply 17, posted (7 years 9 months 3 weeks 2 days 19 hours ago) and read 2601 times:

Quoting JWMD123 (Reply 16):
The government own 25%, the Employee share ownership owns 15%, the pilots of EI bought share independently and through pension scheme totalling near 5% and a wealthy Irish Businessman who is not a big fan of MOL owns 2.5%.

But that's still only 47.5% of the shares.



"Everyone writing for the Telegraph knows that the way to grab eyeballs is with Ryanair and/or sex."
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