Aer Lingus rejects Ryanair bid

Aer Lingus this evening formally rejected Ryanair's takeover bid.

The newly-privatised airline described the offer as ‘undervalued and wholly opportunistic’.

Following a meeting of the Aer Lingus board, chairman John Sharman said the share offer significantly undervalued the group's businesses and attractive long-term growth potential.

He said it would also raise significant regulatory issues as a result of Aer Lingus' strong position in its core markets.

A detailed response by the board will be sent to Aer Lingus shareholders when the formal offer document is issued.

In the meantime, it is strongly urging shareholders to take no action in relation to Ryanair's bid.

Ryanair has confirmed it had secured more than 19% of Aer Lingus, prompting union Siptu to call on the Government to block the takeover by buying back Aer Lingus shares.

Mick Halpenny, the union’s national industrial secretary, said: “There is no point the Government standing by and wringing its hands, like bystanders at a mugging.

“The Government is entirely responsible for this debacle and must act now, while the situation is retrievable.

“The Government could have legitimately invested the €400m Aer Lingus needed to raise without privatising the company. That is why it is essential that sufficient shares in Aer Lingus are bought back by the Government to block the takeover.”