Ryanair denies its Aer Lingus shareholding is a ‘poison pill’

RYANAIR has hit back at claims from Aer Lingus that its stake in the airline is a poison pill.

Aer Lingus chief executive Christoph Mueller said Ryanair’s near 30% stake in the former state airline is deterring other airlines from taking a stake in the business.

Ryanair chief executive Michael O’Leary said Mr Mueller’s claims are rubbish. He said that since Ryanair owns 29.9% of Aer Lingus, that leaves over 70% for any other potential alliance or investor.

“This sounds like just another excuse from Aer Lingus for its abject share price performance and losses since it floated in 2006 at €2.40 per share, whereas today its shares have fallen to less than €0.70,” he said.

Mr Mueller said bosses of European carriers had cited Ryanair’s 29% ownership of the business as an obstacle to any deal.

“A minority shareholding from an alliance partner is restricted by Ryanair. The shareholding works as a poison pill,” he said. Mr Mueller said a corporate tie-up with another airline was impossible while Ryanair stays on the share register.

The Aer Lingus chief also said that he had met Mr O’Leary at an industry gathering but had yet to have a one-to-one meeting with him. He said it was inevitable that Aer Lingus would join one of the three major global airline alliances — Oneworld, Star Alliance or SkyTeam.

Ryanair is the largest shareholder in Aer Lingus, owning close to 30% of the airline. The Irish Government is the second biggest stakeholder with a 25% stake.