« Have We Digested All That Food Yet? | Main | PlaneBusiness Banter Now Posted »

Ryanair Makes New Bid for Aer Lingus


ryanair2.jpg

Let no one say that Ryanair's CEO Michael O'Leary is not a determined person.

This morning Ryanair announced that it will pay $1.78 (€1.40) a share -- or $950 million in cash -- for the remaining 70% of Irish flag carrier Aer Lingus. This price represents a hefty 28% premium over the current stock price.

Two years ago Ryanair tried to buy the airline, but only got as far as putting together a 30% stake in the airline.

Significance of the move? When was the last time we saw a low cost carrier purchase what is considered to be a Legacy carrier?

I suspect Mr. O'Leary may be successful in his attempt this time. There are too many things working in his favor as compared to two years ago.

Posted by Holly on December 1, 2008 10:19 AM |

Post a comment

(If you haven't left a comment here before, you may need to be approved by the site owner before your comment will appear. Until then, it won't appear on the entry. Thanks for waiting.)