Ryanair puts Aer Lingus stake up for sale
23 July 2013
Ryanair said it will sell its 29% stake in Aer Lingus to any other European Union airline that makes an offer.
The surprise move ends a six-year battle with its smaller Irish rival that included three takeover attempts, and comes ahead of a ruling by the Competition Commission (CC) that could have forced a sale.
Ryanair said this morning: ‘In order to dispel the CC’s unfounded and invented “concern” that Ryanair’s shareholding may prevent Aer Lingus from being acquired by another EU airline, Ryanair will undertake to unconditionally sell its 29% shareholding to any other EU airline that makes an offer for Aer Lingus and obtains acceptances from 50.1% of Aer Lingus shareholders.
‘The above remedy is without prejudice to Ryanair’s vehement objection to the CC’s manifestly false conclusion that Ryanair has influence over Aer Lingus’ commercial strategy and/or that Ryanair’s 6½ year old minority shareholding in Aer Lingus has resulted in a lessening of competition.
‘This conclusion is flatly contradicted by 6½ years of evidence, by the European Commission’s findings in February 2013 that competition between Ryanair and Aer Lingus has intensified, and by the evidence submitted even by Aer Lingus and the Irish Government (to the EU), which proves that competition between Ryanair and Aer Lingus intensified to the benefit of consumers over the last 6½ years.’
Ryanair’s head of communications, Robin Kiely, added: ‘This remedy unconditionally removes any ability by Ryanair to block any future takeover of Aer Lingus by another EU airline.
‘This bogus CC “concern” has now been fatally undermined thereby removing any requirement for a divestment of Ryanair’s 6½ year old minority shareholding which even the CC now admits hasn’t given Ryanair any influence, and Aer Lingus admits has led to intensified competition to the benefit of the perhaps one or maybe two UK consumers who even fly Aer Lingus.
http://www.e-tid.com/ryanair-puts-aer-lingus-stake-up-for-sale/83114/
