LONDON (Dow Jones)--Ryanair Holdings announced Friday a Cash Offer of EUR2.80 per Aer Lingus Share, which values Aer Lingus at EUR1.48bn, significantly higher than the EUR1.16bn IPO value of just 8 days previously.
The company said that if it accepts the Cash Offer the Irish Government will realise over EUR500 million from the sale of its Aer Lingus Shares whilst also achieving its stated objectives of retaining the Heathrow slots and the Aer Lingus brand, and securing the long term future of the airline.
Also Aer Lingus employees will realise over EUR220 million from the sale of their Aer Lingus Shares. This represents an average of over EUR60,000 for each employee. [...]
Ryanair said that its offer commits to maintaining Aer Lingus as a stand-alone separate airline. Because the two airlines will compete vigorously, this will not lead to a monopoly. In any event, the question of a monopoly does not arise as there are 50 other scheduled airlines competing with Ryanair and/or Aer Lingus at Dublin Airport, some of which (Air France, Lufthansa and British Airways) are significantly larger than Ryanair and Aer Lingus combined.
- "Ryanair: Aer Lingus Cash Offer At EUR2.80 Per Share"
- "UPDATE: Ryanair Talks Up Aer Lingus Bid; Document Mon"
EDIT: Clarified title.
[Edited 2006-10-20 17:11:06]