Denis O'Brien move to block Ryanair bid for Aer Lingus
ENTREPRENEUR Denis O'Brien is set to cast his 2.5 per cent holding in Aer Lingus against the Ryanair bid.
The Digicel owner told an NCB Wealth Management meeting last Thursday that he would resist any effort by Ryanair boss Michael O'Leary to take over the airline.
Mr O'Brien is reported to have been adamant that he did not want to see the two airlines under one owner, not only because of the dangers of a monopoly but also because he was not a fan of the Ryanair style of operation.
The news comes as a blow to Mr O'Leary, who has made strenuous efforts to woo nearly all the major shareholders in Aer Lingus. Following his failed bid in 2006, the Ryanair chief is now trying to make a greater appeal to all stakeholders.
In a spectacular turnaround, he has offered to recognise the Aer Lingus unions if the bid goes through -- an incentive analysts see as an attempt to woo the key Employers Share Ownership Trust's 14 per cent holding.
In a move aimed at winning over the Government's 25 per cent stake in Aer Lingus, he had offered to hand control of the politically sensitive Heathrow slots to the Government; but on Friday night the Takeover Panel forbade the slots offer as unfair to other shareholders. And he has also made approaches to the Pilots' Association, offering to recognise the pilots' union in the hope of bringing the 5 per cent total pilots holding into the Ryanair camp.
The Ryanair offer document is expected to be published this week, laying out details of the concessions being made to the big stakeholders.
Ryanair sources suggest the Government is tempted to sell its holding. They cite the resignation of Bertie Ahern (a sworn adversary of Mr O'Leary), the offer of the Heathrow slots and the €200m cash injection to the Exchequer as reasons for a possible change of mind.
- Shane Ross
