EU court backs ban on Ryanair bid for rival
By Aoife White |
July 7, 2010, Wednesday
|
Print Edition
Print Edition
A European Union court ruled yesterday that antitrust regulators were right to block Ryanair's hostile 2007 bid for rival Irish airline Aer Lingus.
The General Court, the EU's second-highest judicial authority, also backed the European Commission's refusal to order Ryanair to sell off the 29.8 percent stake it accumulated in Aer Lingus, which makes it the largest shareholder in the airline.
Aer Lingus is demanding that they force Ryanair to offload its shares - and says it will consider an appeal to the EU's highest court.
Aer Lingus' Chairman Colm Barrington said Ryanair's minority stake was causing "anti-competitive effects" and was "contrary to the interests of the majority of our shareholders."
Ryanair's CEO Michael O'Leary said yesterday's ruling "will not prevent Ryanair making a future offer for Aer Lingus" but he had no immediate plans to launch a third takeover effort because it would be unlikely to succeed unless the Irish government sold its 25 percent stake.
The European Commission rarely blocks takeovers but refused to allow Ryanair's hostile 1.48-billion-euro (US$1.85 billion) takeover, saying it would create a monopoly for flights from Dublin airport.
The General Court, the EU's second-highest judicial authority, also backed the European Commission's refusal to order Ryanair to sell off the 29.8 percent stake it accumulated in Aer Lingus, which makes it the largest shareholder in the airline.
Aer Lingus is demanding that they force Ryanair to offload its shares - and says it will consider an appeal to the EU's highest court.
Aer Lingus' Chairman Colm Barrington said Ryanair's minority stake was causing "anti-competitive effects" and was "contrary to the interests of the majority of our shareholders."
Ryanair's CEO Michael O'Leary said yesterday's ruling "will not prevent Ryanair making a future offer for Aer Lingus" but he had no immediate plans to launch a third takeover effort because it would be unlikely to succeed unless the Irish government sold its 25 percent stake.
The European Commission rarely blocks takeovers but refused to allow Ryanair's hostile 1.48-billion-euro (US$1.85 billion) takeover, saying it would create a monopoly for flights from Dublin airport.
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