RYR to sell its Aer Lingus shares

by atoutprix Tue 23 Jul 2013 - 10:55

http://www.ryanair.com/ie/news/ryanair-offers-to-sell-aer-lingus-stake-to-another-eu-airline

Extract :

Ryanair today (23 July) confirmed that, as part of its ongoing remedies discussions with the UK Competition Commission (CC) in a case where the CC have produced no evidence whatsoever of any lessening of competition as a result of Ryanair’s 6½ year old 29% shareholding in Aer Lingus, Ryanair has now offered the following undertaking to the CC:
In order to dispel the CC’s unfounded and invented “concern” that Ryanair’s shareholding may prevent Aer Lingus from being acquired by another EU airline, Ryanair will undertake to unconditionally sell its 29% shareholding to any other EU airline that makes an offer for Aer Lingus and obtains acceptances from 50.1% of Aer Lingus shareholders.
The above remedy is without prejudice to Ryanair’s vehement objection to the CC’s manifestly false conclusion that Ryanair has influence over Aer Lingus’ commercial strategy and/or that Ryanair’s 6½ year old minority shareholding in Aer Lingus has resulted in a lessening of competition.

Ryanair’s Robin Kiely said:
“It is clear from the CC’s own Provisional Findings report that it has found no evidence of any lessening of competition between Ryanair and Aer Lingus. In fact, Ryanair’s recent (3rd) offer for Aer Lingus was prohibited by the EU precisely because of the evidence, submitted by both Aer Lingus and the Irish Government, that competition between Ryanair and Aer Lingus has “intensified” during the past 6½ years.
In order to remove any remaining shred of credibility from this CC process and eliminate any doubt about this imaginary albeit non-existent “concern”, Ryanair has now agreed that it will unconditionally sell its 6½ year old minority stake to any other EU airline which makes an offer for, and acquires more than 50.1% of, Aer Lingus shares, at the same price and terms which are accepted by these other 50.1% of Aer Lingus shareholders. This remedy unconditionally removes any ability by Ryanair to block any future takeover of Aer Lingus by another EU airline.