LCC accuses carrier of "false claims"
Ryanair has lodged a formal complaint against Aer Lingus with Irish takeover regulators.
The low cost carrier refuted claims that its latest takeover attempt "ignores the substantial competition issues and is therefore not capable of completion."
Ryanair said the Aer Lingus statement referred to the 2007 European Commission anti-competition ruling which blocked its first takeover bid.
Michael O'Leary, Ryanair's ceo, said: "Contrary to Aer Lingus' false claims, there is no prohibition in place on the current offer.
"The reality is that the new Ryanair Offer is capable of completion and Aer Lingus' claims to the contrary are false and in breach of Takeover Rules.
"As a result, Ryanair has made a formal complaint to the Takeover Panel in relation to these repeated breaches of the Takeover Rules."
Mr O'Leary quoted Competition Commissioner Neelie Kroes as saying "the European Commission does not rule out a future merger between Ryanair Holdings plc and Aer Lingus Group plc under the right conditions."
The EC blocked Ryanair's first takeover attempt after concerns it would create an Irish monopoly.
The board of Aer Lingus has urged shareholders not to accept Ryanair's latest "undervalued" offer claiming the original ruling was still in effect.
Ryanair's complaint to the Takeover Panel is the latest in a tit-for-tat battle between the rival airline executives.
In a letter address to Aer Lingus' chairman Colm Barrington today (January 8), Mr O'Leary questioned his and ceo Dermot Mannion's belief in an independent future for the airline.
"Perhaps this is why Mr Mannion has recently negotiated an agreement with Aer Lingus, which will allow him to trigger the payment of a 'failure fee' of up to €2.8m to himself if there is a change in control of Aer Lingus and he chooses to resign," said Mr O'Leary.
As a 29.82% shareholder in Aer Lingus, Ryanair demanded this week it hold an extraordinary general meeting (EGM) to discuss revoking the "sweetheart" agreement.
It said the undated contract amendment detailed in Aer Lingus' defence document was in breach of Takeover rules and Irish company law.
A source at Aer Lingus denied any breech of regulations as it was entered into prior to Ryanair's official offer.
He said: "The arrangements were put in place several months ago and certainly before Ryanair launched its new bid for Aer Lingus.
"As a result it's fully compliant with Irish company law and fully compliant with the Takeover Panel."
Mr O'Leary has also called for Aer Lingus to explain to shareholders why it is ignoring the trend towards airline consolidation in Europe.
Earlier this week Ryanair extended the deadline for a decision by Aer Lingus shareholders on its €748m takeover offer until February 13.
The LCC recently met with Tailwind Nominees Limited which owns approximately 2% of Aer Lingus on behalf of its pilots and the Employee Share Ownership Trust (ESOT) which holds 14%.
The bid has been rejected by Aer Lingus directors after Mr Barrington described the €1.40 per share offer as a "rip off."
The Irish government, which has a 25% stake in Aer Lingus, and employees not part of ESOT have also turned down the offer.
www.ryanair.com www.aerlingus.com