11th Dec 2008 17:00
11 December, 2008
For immediate Release
Not for release, publication or distribution, in whole or in part, in or into or from Australia, Canada, Japan, South Africa or the United States of America or any other jurisdiction where it would be unlawful to do so
Aer Lingus Group plc
ISE: EIL1 LSE: AERL
Aer Lingus discusses Ryanair's plans for monopoly with the
Minister for Transport
Chairman and CEO reiterate Aer Lingus Board's unanimous rejection of
Ryanair Offer
Aer Lingus announces that its Chairman, Colm Barrington, and Chief Executive, Dermot Mannion, met today with the Irish Minister for Transport, Noel Dempsey TD to discuss with him Ryanair's announced intention to make an unsolicited offer to shareholders.
They made clear to the Minister that the Board unanimously rejects the offer which significantly undervalues Aer Lingus and would see Ryanair establish a monopoly on air travel / connectivity to and from Ireland.
The Group's Chairman and CEO pointed out that there are significant shortcomings in Ryanair's proposals and that these will be detailed in an Aer Lingus response circular to shareholders in due course. The Minister was briefed on the new agreements recently concluded with members of SIPTU and Impact, the two largest unions in Aer Lingus, which fundamentally change Aer Lingus' staff cost and productivity going forward.
In addition, they emphasised Aer Lingus' exceptionally strong financial condition which will enable the Group to continue to provide strong, sustainable and vigorous competition in the best interests of consumers who fly into and out of Ireland. They outlined that this offer is an effort to eliminate competition in the Irish market place, which would be a disaster for the government and is unacceptable to both consumers and to the EU Commission.
Following the meeting, Chief Executive, Dermot Mannion said:
"We had a productive meeting with the Minister today and have committed to give the Government, as well as all other shareholders, a comprehensive rebuttal of Ryanair's offer after the publication of its Offer Document.
"Ryanair cannot spin away the fact that Aer Lingus is and will continue to be its fiercest competitor into and out of Ireland. It is offering other Aer Lingus shareholders a mere €525 million, a pathetic sum in the context of the €1.3 billion in cash on the Group's balance sheet, the substantial value of our fleet and the value of the Heathrow slots. Aer Lingus remains a strong business with significant cash reserves and a robust long-term future. Despite all of Ryanair's insincere promises, this Offer, if accepted, would be bad for Irish consumers, for Aer Lingus' shareholders and for everyone who works in the airline."
Enquiries:
Aer Lingus Group plc
Enda Corneille Tel: + 353 1 886 2000
Drury Communications Tel: +353 1 260 5000
Billy Murphy
Orla Benson
Powerscourt Tel: +44 207 324 0493
Rory Godson
Victoria Palmer-Moore
The directors of Aer Lingus Group plc accept responsibility for the information contained in this announcement. To the best of the knowledge and belief of the directors of Aer Lingus Group plc (who have taken all reasonable care to ensure that such is the case) the information contained in this announcement is in accordance with the facts and does not omit anything likely to affect the import of such information.
Goldman Sachs International, which is authorised and regulated in the United Kingdom by the Financial Services Authority, is acting exclusively for Aer Lingus Group plc and no one else in connection with the offer by Coinside Limited, a wholly-owned subsidiary of Ryanair Holdings plc (the "Offer") and will not be responsible to anyone other than Aer Lingus Group plc for providing the protections afforded to customers of Goldman Sachs International or for providing advice in relation to the Offer or the contents of this announcement.
Goodbody Corporate Finance, which is regulated in Ireland by the Financial Regulator, is acting exclusively for Aer Lingus Group plc and no one else in connection with the Offer and will not be responsible to anyone other than Aer Lingus Group plc for providing the protections afforded to customers of Goodbody Corporate Finance or for providing advice in relation to the Offer or the contents of this announcement.
Any person who is a holder of one per cent. or more of any class of shares in Aer Lingus Group plc or Ryanair Holdings plc may be required to make disclosures pursuant to Rule 8.3 of the Irish Takeover Panel Act, 1997, Takeover Rules 2007 and 2008, as applied with amendments by the European Communities (Takeover Bids (Directive 2004/25/EC)) Regulations 2006.
Related Shares:
RYA.L