Ryanair has indicated that it may increase its offer for Aer Lingus – subject to shareholder interest – but any new offer will not be over the €2 mark.
In a statement issued this afternoon following a press conference in Dublin earlier today, the airline said in accordance with takeover rules it "cannot increase its offer to €2 or above per Aer Lingus Share" without the consent of the panel.
In the statement Mr O'Leary said "while no decision has been made in relation to any change in the terms of our merger offer, we have no intention of increasing our offer to a price of €2 or above. We are not stupid people and will not pay stupid prices."
Ryanair holds 29 per cent of Aer Lingus and has made a bid that values the company at €750 million, or €140 a share, its second bid in two years. The bid is being opposed by management and staff at Aer Lingus.
"(We are) open to negotiate with all shareholders the possibility of a small increase in price if that were to get the deal over the line," Mr O'Leary said at the press conference.
"If the government were to come to us, for example, and say 'We are interested in selling our stake but not at this price, could we negotiate on price?'. I think we would be, within reason, open to negotiating," he added. And such approach from one of the Aer Lingus shareholders would have to happen before January 29th, weeks before the February 13th deadline for the acceptance of the offer.
"We have seen some ridiculous broker coverage in recent days," he said. "Ryanair will not be increasing its offer to any figure that has a two in it or begins with a two," Mr O'Leary said.
Ryanair's first offer, which valued Aer Lingus at twice what is now on the table, was rejected by European Union regulators as well as major shareholders such as the Government, which owns about 25 per cent, and staff who hold about 14 per cent through The Employee Shareholder Ownership Trust (ESOT).
Ryanair repeated that its offer for Aer Lingus would remain open for acceptance until February 13th, adding that it expected EU regulators to decide within 25 working days whether to approve any takeover or proceed to a more detailed 'Phase II' review process.
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