Ryanair has withdrawn its offer for Aer Lingus, in the wake of the Government's decision not to sell its shares to the budget airline.
Last week the Government turned down Ryanair's €1.40 per share offer, saying it greatly undervalued the airline.
At the time, Ryanair acknowledged that its attempt to buy out Aer Lingus could not succeed without the Government's acceptance, as it would fall below the 90 per cent acceptance condition.
Ryanair chief executive Michael O'Leary said the Government's decision was not in the best interests of Aer Lingus and warned it would be isolated as "a small, peripheral, loss making airline".
Today, Ryanair formally withdrew its offer.
"Ryanair confirms that following the Irish Government’s decision not to accept its all cash offer of €1.40 per share (which valued Aer Lingus Group Plc at €748m), Ryanair acknowledges that its offer cannot now be successful and accordingly the offer is now withdrawn," the airline said in a statement.
Ryanair had faced opposition to the takeover from Aer Lingus's board, and earlier this month extended its takeover offer deadline until February 13th after it received acceptances from just 0.01 per cent of shareholders.
The latest takeover bid followed an unsuccessful offer in 2006.