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clickhappy
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Aer Lingus Rejects Ryanair Takeover Bid

Sat Nov 04, 2006 6:07 am

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
 
Pe@rson
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RE: Aer Lingus Rejects Ryanair Takeover Bid

Sat Nov 04, 2006 6:08 am

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."
 
trekster
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RE: Aer Lingus Rejects Ryanair Takeover Bid

Sat Nov 04, 2006 6:13 am

woohoo


Stick that Ryanair lol
There was no way EI were going to sell the FR
Where does the time go???
 
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N328KF
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RE: Aer Lingus Rejects Ryanair Takeover Bid

Sat Nov 04, 2006 6:19 am

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.' -Theodore Roosevelt
 
Pe@rson
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RE: Aer Lingus Rejects Ryanair Takeover Bid

Sat Nov 04, 2006 6:19 am

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."
 
trekster
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RE: Aer Lingus Rejects Ryanair Takeover Bid

Sat Nov 04, 2006 6:22 am

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
Where does the time go???
 
sk736
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Joined: Tue Aug 08, 2006 4:47 am

RE: Aer Lingus Rejects Ryanair Takeover Bid

Sat Nov 04, 2006 6:22 am

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.
 
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N328KF
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RE: Aer Lingus Rejects Ryanair Takeover Bid

Sat Nov 04, 2006 6:23 am

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.' -Theodore Roosevelt
 
beech19
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RE: Aer Lingus Rejects Ryanair Takeover Bid

Sat Nov 04, 2006 6:25 am

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
 
sk736
Posts: 529
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RE: Aer Lingus Rejects Ryanair Takeover Bid

Sat Nov 04, 2006 6:43 am

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.
 
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N328KF
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RE: Aer Lingus Rejects Ryanair Takeover Bid

Sat Nov 04, 2006 6:59 am

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.' -Theodore Roosevelt
 
sk736
Posts: 529
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RE: Aer Lingus Rejects Ryanair Takeover Bid

Sat Nov 04, 2006 7:10 am

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.
 
planemanofnz
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RE: Aer Lingus Rejects Ryanair Takeover Bid

Sat Nov 04, 2006 7:15 am

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!
 
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N328KF
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RE: Aer Lingus Rejects Ryanair Takeover Bid

Sat Nov 04, 2006 7:25 am

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.' -Theodore Roosevelt
 
egmcman
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RE: Aer Lingus Rejects Ryanair Takeover Bid

Sat Nov 04, 2006 7:28 am

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.
 
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N328KF
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RE: Aer Lingus Rejects Ryanair Takeover Bid

Sat Nov 04, 2006 7:34 am

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.' -Theodore Roosevelt
 
jwmd123
Posts: 405
Joined: Fri May 12, 2006 7:12 pm

RE: Aer Lingus Rejects Ryanair Takeover Bid

Sat Nov 04, 2006 7:44 am

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'
 
Pe@rson
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RE: Aer Lingus Rejects Ryanair Takeover Bid

Sat Nov 04, 2006 7:46 am

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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