Aer Lingus CEO determined to see off Ryanair bid

Low-cost airline Ryanair turned up the pressure on takeover target Aer Lingus by taking its shareholding in its Irish rival to more than 25% today.

Aer Lingus chief executive Dermot Mannion said the increased shareholding was a sure sign that Ryanair’s interest “isn’t going away any time soon”.

However, Mr Mannion reaffirmed his determination to see off the €1.48bn approach, which was tabled in October but is expected to be shunned by investors next week.

Ryanair bought €87m worth of shares on Wednesday in a deal which takes its stake in Aer Lingus from 19.2% to 25.2%. The low-cost airline did not comment on the shares purchase today.

Aer Lingus also said today the improved holding did not mean Ryanair would automatically get a place on its board.

Ryanair’s offer to gain 50% of Aer Lingus stock already faces opposition from key stakeholders, as well as workers’ unions and the Government.

John Sharman, Aer Lingus chairman, claims the bid fails to recognise the unique position of the group’s businesses, its track record and growth prospects.

If the bid failed to gain sufficient support by a deadline of December 4, then Ryanair would have until December 8 to come back with a sweetened offer.

Earlier this month, Ryanair chief executive Michael O’Leary sold 2.5 million shares – valued at €9.7 each – in Ryanair, which is listed on the Irish Stock Exchange.