A takeover bid by Ryanair for Aer Lingus ended last night after European competition authorities decided to investigate the deal further.
But Ryanair said it intended to make a second offer for Aer Lingus if the European Commission gave its go-ahead for the deal following the extended investigation.
The deal had been expected to fail due to opposition from key Aer Lingus shareholders. They had been given until tomorrow to accept the offer, which values Aer Lingus at €1.48 billion ($1.96 billion).
The European Commission decided yesterday to open an in-depth - or Phase II review - of the proposed deal after competitors and customers said the initial package of remedies offered by Ryanair did not meet their competition concerns.
Making a second offer would require Takeover Panel consent since it would fall within 12 months of Ryanair's first offer.
The commission said although Ryanair submitted an improved proposal on competition remedies at a late stage, there was not enough time to decide if it solved problems raised by the deal.
"The proposed acquisition would raise serious competition concerns in the passenger air transport sector and in particular could reduce choice for consumers and could give rise to higher fares than would be likely if the two carriers remained separate," it said in a statement.
The new deadline for a decision is May 11th.
Ryanair chief executive Michael O'Leary he does not accept the commission's argument that it did not have sufficient time to consider Ryanair's proposed remedies to competition issues.