 Aer Lingus says Ryanair's bid significantly undervalues the airline |
The boss of Aer Lingus has confirmed that rival Irish airline and hostile suitor Ryanair has increased its stake in his firm to 25%. Aer Lingus chief executive Dermot Mannion said that the move meant Ryanair's takeover attempt "isn't going away anytime soon".
Mr Mannion reaffirmed Aer Lingus' determination to see-off Ryanair's 1.48bn euro ($1.9bn; �1bn) bid.
Ryanair is said to have paid about 88m euros to up its stake from 19% to 25%.
Ryanair declined to comment on the development.
Higher Ryanair offer?
Aer Lingus and its key shareholders are strongly opposed to Ryanair's bid, saying it greatly undervalues the airline.
The Irish government, which has a 28% stake in Aer Lingus, has said it will not sell its shares.
It is widely expected that Aer Lingus shareholders will reject Ryanair's current offer when they vote on the issue on 4 December.
Ryanair would then have until 8 December to decide whether to relaunch its bid with a higher offer.
Aer Lingus fell into financial difficulty in the aftermath of the 11 September 2001 attacks in the US, but has since successfully reinvented itself by entering the budget market.
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