Aer Lingus’ position on Ryanair’s shareholding appears perverse
19 March 2015
by Cllr Joe Costello
There is something perverse about Aer Lingus arguing for the dismantling of Ryanair’s 30 percent stake in the airline because that high stake is a barrier to the sale of Aer Lingus when, at the same time, Aer Lingus is actively engaged in selling the airline to IAG.
To compound the anomaly, Aer Lingus’ suitors IAG are taking a diametrically opposite position. They are calling on Ryanair not to break up its 30 percent shareholding but to sell the entire holding to IAG. Aer Lingus, on the other hand, are arguing with the U.K.’s Competition and Markets Authority to compel Ryanair to sell off up to 25 percent of its shares immediately.
Aer Lingus bosses appear to be so anxious to do a deal with IAG that they see Ryanair as a hostile shareholder. At the same time they are ridiculing Government concerns about the sale of its 25.1 percent to IAG. It is high time the Aer Lingus board realised that the Government and Ryanair control half of the shares in Aer Lingus, that no sale can go ahead without them and that both shareholders deserve to be treated with respect.