Aer Lingus is reiterating its rejection of a hostile takeover offer from Ryanair. The Irish flag carriers is arguing that the bid, which stands at 1.48 bn euros is still undervalued.The latest snub comes after Ryanair posted Aer Lingus shareholders documents detailing the formal terms of its offer.
“The offer from Ryanair is without merit,” said Aer Lingus chairman John Sharman in a company statement issued on Monday.
“It fails to recognise the unique position of the group’s businesses, its outstanding track record and its excellent growth prospects.”
‘The offer also ignores the significant regulatory issues that a combination would face,’ Sharman explained.
“A takeover by Ryanair, no matter how it is dressed up, would be bad for Aer Lingus, for its shareholders, for its employees and for consumers.”
The statement on Monday said that Aer Lingus shareholders were “strongly urged” to take no action in relation to the offer from Ryanair, which has amassed a 19.17-percent stake in Aer Lingus.