Ryanair shares suffer after court ruling

Ryanair’s share price plunged 12c to €6.48 after a French court in Nancy upheld a lower court’s ruling on subsidies it received from Strasbourg’s Chamber of Commerce.

Chief Executive Michael O’Leary immediately vowed to appeal the decision through the French courts and the European Court in Luxembourg if necessary.

Some weeks ago O’Leary had indicated that the court would find against Ryanair leading to a fall in the company’s share price then also.

Analysts later predicted that a ‘negative’ decision by the courts could result in the stock taking two years recover.

Following yesterday’s announcement by Independent News & Media that it was to shed 600 jobs worldwide, analysts have responded favorably.

The programme is primarily targeted at improving the cost efficiencies of its Irish, UK and South African operations.

Analysts left adjusted earnings forecasts for 2003 and 2004 largely unchanged but increased their 2005 earnings forecasts by 6.4%.

564 net redundancies are expected as staff costs are IN&M's most significant cost item.

They are estimated to form approximately one third of the company’s overall cost base. IN&M today appointed Dr. Brian Hillery as a non-executive director.

Financial stock performed well with Allied Irish Bank up 7c to €12.34 while Anglo Irish Bank shot up 41c to €12.80.

Bank of Ireland was up 3c to €10.55.

Pharmaceutical firm Elan which improved its cash reserve position with the purchase of €400m in Liquid Yield Option Notes (LYONs) yesterday, saw its share price continue to rise today.

It finished at €5.05 - up 25c – at close of business today.