Aer Lingus rejects Ryanair bid
Aer Lingus has rejected Ryanair's €694 million takeover, saying that the bid "undervalues" the airline.
"The Board, having considered the Offer with its advisers, believes the offer, even if it is capable of completion, undervalues Aer Lingus," said a statement from Aer Lingus this afternoon.
"Aer Lingus shareholders are accordingly advised to take no action in relation to the offer."
The airline's statement went on to give further reasons for caution in relation to Ryanair's offer.
"In evaluating any offer, the Board must consider the uncertainties and risks relating to it," said the statement.
"The UK Competition Commission is currently investigating Ryanair’s 29.82 per cent holding in Aer Lingus with the result that Ryanair is now under a legal prohibition from undertaking any further integration with Aer Lingus without the consent of [that body] and may be subject to an order to sell down its shares at the end of the CC investigation.
"Furthermore, the Board notes that Ryanair’s unsolicited offer in 2006 was blocked by the European Commission and was not capable of completion and that Ryanair’s second offer, in 2008, was withdrawn. Consequently there is significant uncertainty that any offer from Ryanair, if made, would be capable of completion."
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*Richard Curran column: [Why shouldn't Ryanair own Aer Lingus?](http://www.businesspost.ie/#!story/Home/News/Comment%3A+Why+shouldn't+Ryanair+own+Aer+Lingus%3F/id/19410615-5218-4fe1-ac4c-192a39592965)*
*Jon Ihle column: [Government should cash in on Ryanair takeover bid.](http://www.businesspost.ie/#!story/Home/News/COMMENT%3A+Government+should+cash+in+on+Ryanair+bid/id/19410615-5218-4fe1-c1d8-d029b5355392)*
*Cliff Taylor column: [What must happen for Ryanair's bid to succeed.](http://www.businesspost.ie/#!story/Home/News/UPDATE%3A+Can+Ryanair's+audacious+move+fly%3F/id/19410615-5218-4fe0-c3b1-7b5683102573)*
*What the [analysts say](http://www.businesspost.ie/#!story/Home/News/Ryanair+and+Aer+Lingus%3A+what+analysts+say/id/19410615-5218-4fe1-96e8-cdc194960522) about the deal.*
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