THE AER Lingus Employee Share Ownership Trust (Esot), which administers the shareholding in the company owned by the staff, yesterday met representatives of Ryanair regarding its bid for the former State airline, writes Martin Wall, Industry Correspondent.
In a statement, Esot said that its financial and legal advisers had met with Ryanair. It said that Ryanair had sought the meeting.
Esot said its representatives had previously met representatives of Aer Lingus. The trust holds around 14 per cent of Aer Lingus, and is the third largest shareholder after Ryanair and the Government.
Aer Lingus has formally rebuffed Ryanair's cash offer for the company. At the launch of its defence document just before Christmas, Aer Lingus chairman Colm Barrington described Ryanair's €1.40-a-share offer as a "rip-off" for "our shareholders".
The airline highlighted its net cash balances of €801 million; a fleet worth €601 million, net of debt; and the value of its brand and its Heathrow slots.
If successful, Ryanair would pay €525 million to acquire the 70.2 per cent of shares in Aer Lingus it does not already own.
Trade unions representing staff at Aer Lingus have expressed opposition to the proposed Ryanair takeover and scepticism about guarantees put forward by its chief executive that trade unions would continue to be recognised. Michael O'Leary does not recognise unions in Ryanair.
Impact, which represents pilots and cabin crew at Aer Lingus, has said that "the corporate culture of Ryanair is just something that is a complete anathema to our members". Siptu has said that its members at Aer Lingus already had trade union recognition, and that Mr O'Leary was not offering them anything new.
Mr O'Leary has claimed he would create 1,000 jobs, transfer control of the slots at Heathrow to the Houses of the Oireachtas, recognise unions at the airline and place a €100 million guarantee to slash fares by 5 per cent over three years if the Ryanair bid was successful.
