Company Watch - Aer Lingus.Nov 13, 2006 Aer Lingus board on Friday strongly advised shareholders to take no action on Ryanair's hostile takeover Hostile Takeover A takeover attempt that is strongly resisted by the target firm. Notes: Hostile takeovers are usually bad news, as the employee moral of the target firm can quickly turn to animosity against the acquiring firm. offer of [euro]2.80 ($3.53) per share, dismissing it as "ill-conceived, contradictory and anticompetitive an·ti·com·pet·i·tive adj. That discourages competition among businesses: anticompetitive foreign trade restrictions. ." In a circular, the board told shareholders that the Ryanair offer "significantly undervalues Aer Lingus [and] ignores Aer Lingus' excellent prospects as an independent company." At its current offer price, Ryanair would be buying EI "at a significant discount," the board concluded. CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Dermot Mannion said the airline's recent IPO (Initial Public Offering) The first time a company offers shares of stock to the public. While not a computer term per se, many founders, employees and insiders of computer companies have found this acronym more exciting than any tech term they ever heard. provided "the capital we need...Don't lose out on the opportunities that lie ahead," he implored shareholders. Nov 6, 2006 The board argued that a takeover would destroy airline competition in Ireland, noting that the combined carrier "would have approximately 80% of all available European short-haul capacity from Dublin." It warned shareholders not to be "fooled" by Ryanair's claim that the combined carrier would not be a monopoly. Saying it is targeting a 15% annual return on fleet investment and has halved its unit costs over the last five years, the board argued that it is best positioned to successfully grow the airline, saying, "Shareholders will be best served by staying with Aer Lingus." Nov 6, 2006 Ryanair, whose bid values Aer Lingus at EUR EUR In currencies, this is the abbreviation for the Euro. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 1.48 billion (USD USD In currencies, this is the abbreviation for the U.S. Dollar. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. $1.9 billion), has said it would remain a long term investor in its rival if the bid failed. It holds 19.2 percent already. If we don't make it, well then we can continue to be a minority stakeholder and we can hold our position and in a year's time we can make another bid if we so wish," he said later in an interview with Irish broadcaster RTE (1) See runtime engine. (2) (Real-Time Executive) The operating system used in the HP 1000 series. See HP 1000. . O'Leary said Ryanair planned to return some of its cash pile to investors by the end of 2007 either with a special dividend or share buyback, regardless of whether the offer succeeds. Nov 6, 2006 Z Editor: Aram Gesar, eMail: edit@AirGuideOnline.com For more global news, reviews, features and analysis, please go to: http://www.airguideonline.com/onlinenews.htm To Subscribe to our Newsletters: http://www.airguideonline.com/order_formsubs.htm#news To Advertise: advert@AirGuideOnline.com Oct 30, 2006 |
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