Aer Lingus down after sale blocked

AER LINGUS tumbled the most for six months in Dublin trading after the second-largest investor — the Government — rejected a takeover bid from Ryanair.

The airline dropped 20 cent, or 15%, to 1.15, the biggest decline since July 28, 2008. The Government, whose 25% holding is second only to Ryanair’s 29.8% stake, said on Thursday that the bid undervalued Aer Lingus and a merger of the Dublin-based carriers would harm competition.

Ryanair said the decision meant that its takeover bid could not succeed.