Turkish Aer Lingus buyout denied

The chief executive of Turkish Airlines has said that his company is not planning to buy Aer Lingus, despite reports that it was likely to.

Turkish Aer Lingus buyout denied

The chief executive of Turkey’s national carrier, Temel Kotil, said that barriers in place by the EU would hinder the non-EU carrier from buying Aer Lingus. “The EU does not favour a company outside the union holding a majority stake. There isn’t a liberal market there, our path for inorganic growth in the EU is currently blocked.”

The Sunday Business Post reported on June 24 that Turkish Airlines was one of several international airlines eyeing up Aer Lingus. Abu Dhabi’s Etihad Airways, which already has a 3% share in the airline, is still believed to be considering a bid.

Previously, Aer Lingus’s biggest shareholder and biggest domestic rival, Ryanair, placed its third bid. The low-cost airline claimed it would offer €1.30 per share to secure at least 50% of its rival airline. The bid would value Aer Lingus at €694 million, but has to pass by the European Commission, which has previously blocked a Ryanair bid for the airline.

Ryanair lodged their bid on June 19 and has 28 days from that date to issue its formal bid. However, Aer Lingus has asked their shareholders to reject Ryanair’s offer.

In a statement made by Aer Lingus last week, it claimed there is significant uncertainty any offer from Ryanair, if made, would be capable of completion.

“The board, having considered the offer with its advisers, believes the offer, even if it is capable of completion, undervalues Aer Lingus,” it stated.

The bid is also being considered by the Government, which has rejected previous bids by Ryanair. However, the Government, which is the second biggest shareholder in Aer Lingus, recently revealed it is contemplating selling its 25% share in the 75-year-old carrier.

More in this section

IE logo
Devices


UNLIMITED ACCESS TO THE IRISH EXAMINER FOR TEAMS AND ORGANISATIONS
FIND OUT MORE

The Business Hub
Newsletter

News and analysis on business, money and jobs from Munster and beyond by our expert team of business writers.

Sign up
Puzzles logo
IE-logo

Puzzles hub

Visit our brain gym where you will find simple and cryptic crosswords, sudoku puzzles and much more. Updated at midnight every day. PS ... We would love to hear your feedback on the section right HERE.

Lunchtime
News Wrap

A lunchtime summary of content highlights on the Irish Examiner website. Delivered at 1pm each day.

Sign up
Revoiced
Newsletter

Some of the best bits from irishexaminer.com direct to your inbox every Monday.

Sign up
Execution Time: 0.223 s