Aer Lingus Share Discussion Threads

[quilty2] 05/10/2006 10:25

The Aer Lingus defense will be to place an order for a new fleet of Airbus planes:), funniest thing out of all this was DJ Ryanair CEO sees Irish Gov accepting bid with great joy.DJ Ryanair CEO happy to have irish Gov as a shareholder.

[mpto] 05/10/2006 10:10

Yeah - not so sure - creation of a national champion etc and may be viewed on a European context rather than a domestic one.

But it is very funny - the normal defence would be to argue that any bid undervalues the company - should be interesting so see how ALs advisors cope with that since they set the ipo price last week !!

Very smart trade - all he wants is 51% - effective control, landing slots, full fleet and a few costs to be trimmed - all for 700m....and our gov is obsessed with 8k !

[cat100] 05/10/2006 10:09

I hope it leads to another bid form someone else . Aerlingus was sold cheap.

[cat100] 05/10/2006 10:08

No chance that O'Leary wants those slots. They are very valuable but go against his model . He operates out of cheap airports not expensive ones. I think he will break up the competition and become the new national airline . It's not good for air travel in this country . Ryanair are in with Goodbodys right now and I'm expecting a call very soon with the story. I'll post what I find out later.

[factsonly] 05/10/2006 10:07

It could be a brilliant publicity stunt... just think of all the press he gets (at minimal cost) and the news/announcement stir things up in Aer Lingus and other airlines. Nonetheless, I still hate the guy.

[quilty2] 05/10/2006 09:59

I can't see the Irish Gov playing ball on this,O'Leary is just stirring although i'm sure he would love to have the slots in the airports that Aer Lingus have.

[factsonly] 05/10/2006 09:48

The better question would be: Will the Irish/European governments allow the takeover? A merged company would mean a new monopoly.

[bucho] 05/10/2006 09:42

Are there any other airlines that would consider bidding against Ryanair for Aer Lingus?

Ryanair is the airline that would seem to have the best synergies, given the Irish connection and the fact that they both operate at the cheap end of the market.

What about Easyjet? Do you think they might be interested in bidding?

[cat100] 05/10/2006 09:14

Ryanair might get aerlingus at €3.50 if they're lucky

[cat100] 05/10/2006 08:52

We are looking at a nice return here and fast by the look at it

[cat100] 05/10/2006 08:51

RYANAIR ADVISES THAT IT HAS ACQUIRED A 16% STAKE IN AER LINGUS AND ANNOUNCES AN
ALL-CASH OFFER OF Euro2.80 PER SHARE VALUING AER LINGUS AT Euro1.481BN


The board of Ryanair Holdings plc today (5th October 2006) advises that it has
acquired over 16% of the issued share capital of Aer Lingus Group plc. Ryanair
now announces its intention to make an all cash offer of Euro2.80 per share for the
issued share capital of Aer Lingus not already in the ownership of Ryanair. This
offer is conditional on, among other things, obtaining at least a majority of
the shares in Aer Lingus. This cash offer values Aer Lingus at approximately
Euro1.481bn and represents a premium of 27% (approximately) over last week's IPO
share price of Euro2.20 per share and a premium of 12% (approximately) over last
evening's closing price for Aer Lingus shares of Euro2.51.

The share price appreciation since the Aer Lingus IPO occurred during the same
short period in which Ryanair acquired over 16% of Aer Lingus shares at an
average price of Euro2.42 per share. During the 2nd and 3rd of October - the two
days during which Ryanair was not actively buying Aer Lingus shares - the share
price fell back from Euro2.48 to Euro2.41.

Speaking at the launch of the offer this morning, Ryanair's CEO, Michael
O'Leary, said:

"This offer represents a unique opportunity to form one strong airline
group for Ireland and for European consumers. We will expand, enhance
and upgrade the Aer Lingus operations. This offer - if successful -
means both companies will continue to operate separately and compete
vigorously in the small number of routes on which we both operate -
currently around 17 of the approximately 500 routes operated by the two
airlines. We believe the price of Euro2.80 to be an excellent offer. If
accepted the Irish Government will realise over Euro500m from the sale of
their Aer Lingus shares, and the employees will realise over Euro220m which
equates to an average of over Euro60,000 per employee."

The combined strength of Ryanair and Aer Lingus would establish an Irish airline
group with over 50m passengers annually, capable of competing on the European
and World stage against other large European airline groups, including Lufthansa
/SAS/Swiss (75m passengers), Air France/KLM (70m passengers) and BA/Iberia (63m
passengers). As the European airline industry consolidates, this acquisition, if
it proceeds, will largely replicate previous consolidations in, for example,
France (Air France/Brit Air/Regionale/KLM), UK (BA/B.Cal/DanAir/City Express),
Germany (Lufthansa/Eurowings/Lufthansa Cityline/Swiss) and Scandinavia (SAS/
Braethens).

There are benefits of combining these two Irish and European airlines into one
group. To give a flavour of what this offer - if successful - might mean to Aer
Lingus, its stakeholders and the people of Ireland and Europe, Ryanair intends
to:-

*Reduce Aer Lingus' average short haul fare (Euro87.55 in 2005) by 2 1/2% a
year for a minimum period of four years;
*Reduce Aer Lingus' fuel surcharges as the price of oil falls from recent
highs;
*Retain the Aer Lingus brand;
*Retain the Heathrow slots;
*Retain all profitable routes currently operated by Aer Lingus;
*Reduce Aer Lingus' costs through improved efficiencies and Ryanair's
superior purchasing power;
*Give Aer Lingus access to the benefit of Ryanair's lower cost aircraft
deliveries and lower cost financing facilities;
*Upgrade Aer Lingus' transatlantic fleet and improve its long haul
product;
*Maintain Aer Lingus as a stand alone, separate company within one strong
Irish airline group under common ownership but run as separate competing
airlines.

As the above benefits demonstrate, the Board of Ryanair intends to deliver a
publicly owned, Irish managed and headquartered airline group with the necessary
ambition, expertise, financial strength and cost base to take on European and
Global competitors well into the future. As an island nation, Ireland is
critically dependant upon strong and secure low fare airline services in order
to sustain and develop tourism and economic growth. Investing in Aer Lingus is
attractive for Ryanair and its shareholders because, amongst other things, Aer
Lingus' earnings yield is superior to the returns currently available on
Ryanair's cash deposits. Ryanair believes that there will be opportunities (by
combining the purchasing power of Ryanair and Aer Lingus) to reduce operating
costs, to increase efficiencies and to pass on these savings in the form of low
fares to the travelling public.

Ryanair has grown to be Europe's largest low fares airline by continuously
lowering prices and funding these reductions through cost savings and
efficiencies. We believe there is an opportunity to apply this successful low
fares formula to Aer Lingus where currently, in its short haul operation, fares
and costs remain far too high. We would also expect to work closely with Aer
Lingus, if the offer is successful, to improve its long haul operations where we
believe there is room to upgrade the long haul fleet and improve this product
which has not kept pace with the competition in recent years. Since we envisage
that the two companies would be run separately, in the event that this offer is
successful, nothing in this transaction will deflect Ryanair from continuing to
focus on its own pan-European expansion or from continuing to deliver unit cost
reductions and continuing to offer lower fares to millions of Ryanair's European
passengers.

There are numerous precedents across Europe (for example, in the UK, France,
Spain, Germany and Scandinavia) for two airlines of similar nationality coming
together to form a stronger, more widely diversified airline group. The European
Union has recognised the value of competitive European airline consolidation
because of the benefits which it brings to consumers. This offer, if successful,
will result in that precedent being largely replicated here in Ireland and
elsewhere, with the added benefit that customers of Aer Lingus will enjoy lower
fares in the short haul market, a better product and service in the long haul
market by reducing fuel surcharges as oil prices fall, as Ryanair applies its
philosophy of lower costs and lower fares to Aer Lingus' existing business.

In accordance with the strict rules which apply to takeovers, Ryanair is limited
in its ability to answer questions in relation to this offer.

This release should be read in conjunction with the full text of the rule 2.5
announcement issued today.

The directors of Ryanair accept responsibility for the information contained in
this announcement other than that relating to Aer Lingus, the Aer Lingus Group,
the directors of Aer Lingus and persons connected with them. To the best of the
knowledge and belief of the directors of Ryanair (who have taken all reasonable
care to ensure that such is the case), the information contained in this
announcement for which they respectively accept responsibility is in accordance
with the facts and does not omit anything likely to affect the import of such
information.

This announcement, including information included or incorporated by reference
in this announcement, may contain 'forward-looking statements' concerning the
Cash Offer, Ryanair, and Aer Lingus. Generally, the words 'will', 'may',
'should', 'could', 'would', 'can', 'continue', 'opportunity', 'believes',
'expects', 'intends', 'anticipates', 'estimates' or similar expressions identify
forward-looking statements. The forward-looking statements involve risks and
uncertainties that could cause actual results to differ materially from those
expressed in the forward-looking statements. Many of these risks and
uncertainties relate to factors that are beyond the companies' abilities to
control or estimate precisely, such as future market conditions and the
behaviours of other market participants, and therefore undue reliance should not
be placed on such statements. Ryanair assumes no obligation in respect of, nor
intends to update these forward-looking statements, except as required pursuant
to applicable law.

Any person who is the holder of 1 per cent. or more of any class of shares in
Aer Lingus or Ryanair may be required to make disclosures pursuant to Rule 8.3
of the Irish Takeover Panel Act, 1997, Takeover Rules 2001 to 2005, as applied,
with amendments by the European Communities (Takeover Bids (Directive 2004/25/
EC)) Regulations 2006.

Davy Corporate Finance, which is regulated in Ireland by the Financial
Regulator, is acting for Ryanair and no one else in connection with the Offer,
and will not be responsible to anyone other than Ryanair for providing the
protections afforded to clients of Davy Corporate Finance nor for providing
advice in relation to the Offer, the contents of this document or any
transaction or arrangement referred to in this announcement.

Morgan Stanley & Co. Limited is acting exclusively for Ryanair and no one else
in connection with the Offer and will not be responsible to anyone other than
Ryanair for providing the protections afforded to clients of Morgan Stanley &
Co. Limited nor for providing advice in relation to the Offer, the contents of
this document or any transaction or arrangement referred to in this
announcement.

[bucho] 05/10/2006 08:48

Well, we haven't had to wait long for a 27% return, at least, on our investment!

[cat100] 05/10/2006 08:48

Ryanair has a 16% stake in Aergreen already . GO M.O.L. YOU DA MAN

[cat100] 05/10/2006 08:32

Ryanair's MOL trying to buy Aergreen lol. Bid €2.80 . He has bought a sh*t load of shares over the last 2 days. VERTICAL LIFTOFF

[poo bear] 05/10/2006 08:26

Would you believe it?

Ryanair have made a bid for Aer Lingus.

"RYANAIR ADVISES THAT IT HAS ACQUIRED A 16% STAKE IN AER LINGUS AND ANNOUNCES AN
ALL-CASH OFFER OF Euro2.80 PER SHARE VALUING AER LINGUS AT Euro1.481BN


The board of Ryanair Holdings plc today (5th October 2006) advises that it has
acquired over 16% of the issued share capital of Aer Lingus Group plc. Ryanair
now announces its intention to make an all cash offer of Euro2.80 per share for the
issued share capital of Aer Lingus not already in the ownership of Ryanair. This
offer is conditional on, among other things, obtaining at least a majority of
the shares in Aer Lingus. This cash offer values Aer Lingus at approximately
Euro1.481bn and represents a premium of 27% (approximately) over last week's IPO
share price of Euro2.20 per share and a premium of 12% (approximately) over last
evening's closing price for Aer Lingus shares of Euro2.51.

The share price appreciation since the Aer Lingus IPO occurred during the same
short period in which Ryanair acquired over 16% of Aer Lingus shares at an
average price of Euro2.42 per share. During the 2nd and 3rd of October - the two
days during which Ryanair was not actively buying Aer Lingus shares - the share
price fell back from Euro2.48 to Euro2.41.

Speaking at the launch of the offer this morning, Ryanair's CEO, Michael
O'Leary, said:

"This offer represents a unique opportunity to form one strong airline
group for Ireland and for European consumers. We will expand, enhance
and upgrade the Aer Lingus operations. This offer - if successful -
means both companies will continue to operate separately and compete
vigorously in the small number of routes on which we both operate -
currently around 17 of the approximately 500 routes operated by the two
airlines. We believe the price of Euro2.80 to be an excellent offer. If
accepted the Irish Government will realise over Euro500m from the sale of
their Aer Lingus shares, and the employees will realise over Euro220m which
equates to an average of over Euro60,000 per employee."

The combined strength of Ryanair and Aer Lingus would establish an Irish airline
group with over 50m passengers annually, capable of competing on the European
and World stage against other large European airline groups, including Lufthansa
/SAS/Swiss (75m passengers), Air France/KLM (70m passengers) and BA/Iberia (63m
passengers). As the European airline industry consolidates, this acquisition, if
it proceeds, will largely replicate previous consolidations in, for example,
France (Air France/Brit Air/Regionale/KLM), UK (BA/B.Cal/DanAir/City Express),
Germany (Lufthansa/Eurowings/Lufthansa Cityline/Swiss) and Scandinavia (SAS/
Braethens).

There are benefits of combining these two Irish and European airlines into one
group. To give a flavour of what this offer - if successful - might mean to Aer
Lingus, its stakeholders and the people of Ireland and Europe, Ryanair intends
to:-

*Reduce Aer Lingus' average short haul fare (Euro87.55 in 2005) by 2 1/2% a
year for a minimum period of four years;
*Reduce Aer Lingus' fuel surcharges as the price of oil falls from recent
highs;
*Retain the Aer Lingus brand;
*Retain the Heathrow slots;
*Retain all profitable routes currently operated by Aer Lingus;
*Reduce Aer Lingus' costs through improved efficiencies and Ryanair's
superior purchasing power;
*Give Aer Lingus access to the benefit of Ryanair's lower cost aircraft
deliveries and lower cost financing facilities;
*Upgrade Aer Lingus' transatlantic fleet and improve its long haul
product;
*Maintain Aer Lingus as a stand alone, separate company within one strong
Irish airline group under common ownership but run as separate competing
airlines.

[cat100] 04/10/2006 11:00

Taking off nicely looking at the chart above. Hope we find vertical lift off soon

[cat100] 04/10/2006 08:30

Oil should help with Aerlingus. I see we have risen a bit this morning.

[poo bear] 04/10/2006 00:53

New Board with charts.

[cat100] 02/10/2006 13:41

Here is a thread with charts.

[bucho] 30/9/2006 21:25

ajmace,

How about adding some charts in the header?

[6lucky] 29/9/2006 12:06

me thinks G B cannot do any harm as he has lost more friends [bar T B ]then created
the only person who could stop these climbing dizzy heights is O B L
Where about of him nobody knows , alive or dead ? no fact .
Done any more serious damage to CITY [since 9/11]
answer is no
look at easy jet ryanair ba
all european co.s listed and look at valuation post 9/11
more than quadrupled
AERL in my opinion is just making a start and the only way for it to
go is to try and catch others up
and Irish govt. is helping
ALL IMHO

[factsonly] 29/9/2006 10:36

He can cause more friction with middle east... driving up oil prices etc.

[ajmace] 29/9/2006 10:18

Hey Todd,

Exactly how can George Bush spoil the Aer Lingus debut on Monday?

[todd] 29/9/2006 07:07

In a word (or two even), George Bush