Aer Lingus chief executive Christoph Mueller has said he has institutional investors lined up to take a stake of up to 10% should the Government release its 25% stake onto the open market.
Mueller doubts that the European Commission would approve Ryanair’s €694m takeover. In a letter to shareholders, Aer Lingus said: "Ryanair’s 2006 offer was prohibited by the European Commission on competition grounds, and your board believes that the reasons for prohibition are now even stronger than before: the number of routes that Ryanair would monopolise has sharply increased. Your board has received legal advice that the European Commission is likely once more to prohibit the Ryanair offer, and that this is not therefore a credible offer which is capable of completion."
Mueller has accused Ryanair of simply trying to eradicate the competition in the Irish market and if approved, the takeover would lead to higher fares for consumers.