ESOT in talks with LCC
The Aer Lingus Employee Share Ownership Trust (ESOT) has had talks with Ryanair over its hostile bid for the Irish carrier.
Representatives of the Trust, which owns 14% of Aer Lingus shares, met officials from the low cost carrier earlier this week but both sides did not comment on the meeting.
ESOT is the third largest shareholder in the Irish carrier, after Ryanair itself which owns 29.82% and the Irish government which has a 25% stake.
Ryanair's second hostile bid which, valued the carrier at €748m or €1.40 a share, has already been rejected by the Aer Lingus directors.
In their formal defence document published last week, Aer Lingus said the bid significantly under valued the carrier, its "robust" financial position and its growth prospects.
Colm Barrington, Aer Lingus's chairman, described the offer as a "rip off."
Ryanair's first bid, in 2006, valued Aer Lingus at €1.5bn or €2.80 per share.
It was rejected by the airline and also blocked by the EC. Ryanair is in the process of appealing against this decision.
The latest bid has already been rejected by Aer Lingus employees not part of ESOT despite Ryanair's offer to allow unions to operate at the airline.
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