Saturday 20 January 2018

Aer Lingus loses High Court bid over Ryanair takeover

Ryanair chief Michael O'Leary
Ryanair chief Michael O'Leary

Tim Healy

AER Lingus has lost its High Court bid to prevent Ryanair issuing another takeover bid for it until February of next year.

The company, which says it has spent €40m defending Ryanair's two previous unsuccessful bids, challenged a May 2013 ruling by the Irish Takeover Panel (ITP) which meant Ryanair had only to wait 12 months after its unsuccessful August 2012 takeover bid before it could make another bid next month.

Aer Lingus said it is it was being hampered in its commercial activities due to restrictions imposed by such takeover attempts.

It asked the court  to rule no such bid could be launched before February next, which would be 12 months after the European Commission's decision blocking the last Ryanair bid was made.

The action arose from Ryanair's third bid in July last year to win control of Aer Lingus.

That €694 offer was blocked last February by the European Commission which said the proposed merger would harm consumers by creating a dominant company on 46 routes where both airlines are competing.

The ITP and Ryanair opposed the Aer Lingus' application for leave to bring a High Court judicial review over the matter.

Today, Mr Justice Sean Ryan ruled Aer Lingus had not established substantial grounds for judicial reivew because it had not shown that a reading of the takeover rules by the ITP was "wrong or even questionable."

He refused leave to challenge the ITP's ruling.

Online Editors

Promoted Links

Promoted Links

Business Newsletter

Read the leading stories from the world of Business.

Also in Business