Ryanair dismisses Aer Lingus share-disposal threat
Ryanair has downplayed today's announcement by Aer Lingus that it will appeal to the European Court force the low-cost airline to dispose of its 29% shareholding in Aer Lingus.
The European Commission has recently confirmed that since Ryanair has neither de facto nor de jure control over Aer Lingus, there are no legal grounds for such a compulsory disposal.
A statement from Ryanair said: "Ryanair’s lack of control or influence over Aer Lingus was recently highlighted by the two separate refusals by the Aer Lingus Board to hold an EGM at the request of Ryanair to allow shareholders to consider Aer Lingus’s abandonment of its profitable Shannon-Heathrow route. Ryanair has no doubt that this appeal will be dismissed."
Ryanair’s head of communications, Peter Sherrard said: "This appeal would seem to be another smokescreen from the board of Aer Lingus to distract from its awful performance over the past 12 months.
"Aer Lingus’s share price closed last week at €2.15, almost 25% lower than Ryanair’s €2.80 offer in October last year, and some 5c per share less than Aer Lingus’s original float price in September 2006.
"It is clear that the market has little faith in the board of Aer Lingus, who last year advised shareholders to reject an offer of €2.80, but have presided over the withdrawal of its Dubai route, a succession of labour problems and the collapse in its share price.
"Perhaps if the board of Aer Lingus spent more time improving the management of the airline and its share price, they wouldn’t have to waste time worrying about Ryanair’s minority shareholding".
