Supplimentary article from today’s Sunday Business Post:
Thursday, October 5:
Ryanair chief executive Michael O’Leary calls an early-morning press conference to announce the company’s approach bid for Aer Lingus.
Ryanair’s offer values Aer Lingus at around €1.48 billion – €2.80 a share – 60c above the flotation price.
At the company’s press conference, it is revealed that Ryanair has already bought 16 per cent of the company. This rises to 19.2 per cent by the end of the day. Many Ryanair shareholders voice their concern at the logic of the bid.
Aer Lingus chairman John Sharman describes the move as ‘‘unsolicited’’ and ‘‘opportunistic’’, saying that it significantly undervalues the business. Minister for Transport Martin Cullen tells the Dail of the government’s opposition to the bid and its intentions to hold onto its 28.3 per cent stake.
Friday, October 6:
The government moves to cement its opposition to the bid; Cullen says any potential buyout could put the US deal with Irish carriers in jeopardy. The government also begins to consider potential opposition on legal and competitive grounds.
Shares in Aer Lingus rise to €2.98, meaning Ryanair is prohibited from purchasing additional shares until the price drops or the company improves its offer.
October 9
The Employee Share Ownership Trust (Esot) at Aer Lingus considers the options available to it to block the bid, including the purchase of additional shares.
With the government and Esot holding about 40 per cent of the airline between them, the purchase of another 10-11 per cent would stop Ryanair from gaining a controlling interest.
US shareholders in Ryanair continue to voice their opposition to the move, as the low-cost airline tries to get them on-side again.
October 10
Aer Lingus asks Goldman Sachs to prepare a defence to Ryanair’s bid; this includes preparing a regulatory and competition case against the offer.
October 11
It is revealed that a group of Aer Lingus pilots has spent about €24 million buying over eight million shares at more than €3 each.
This represents a stake of around 1.5 per cent and narrows the amount of free-flowing shares available to Ryanair.
Minister for Finance Brian Cowen tells the Dail that a ‘‘lot of obstacles’’ remain in the way of the attempted takeover, pointing out that, as the government holds more than 25 per cent of the company, it cannot be delisted from the stock market and, as such, would remain separate from Ryanair, regardless of what happens.
October 12
At a meeting of transport ministers in Luxembourg, Cullen defends the government’s handling of the situation and details its plans to open talks with the EU relating to competition issues raised by the bid.
In a conference call to investors, a Ryanair executive gives additional details on the company’s plans for Aer Lingus, including the development of former state airline’s 18-acre headquarters.
He says jobs may be lost in the merger, but declines to give a figure.
October 13
Speaking on RTE radio, Aer Lingus chief executive Dermot Mannion says he is confident the airline will maintain enough support to see off the hostile bid by its rival.
He says it’s inconceivable that the two management teams could be integrated and says he can see no circumstances where they could work together.