A group of Aer Lingus pilots has purchased more than 9.8 million shares in the company for almost €30 million as part of a bid to block a hostile takeover bid by rival airline Ryanair.
The transaction was officially confirmed by the Irish Stock Exchange this morning.
A total of 9,824,765 shares were bought yesterday afternoon at a price of €3.04 in a transaction managed by Goodbody Stockbrokers, which is advising the airline. They were officially purchased on behalf of Irish Airline Pilots Pensions Ltd, which now holds a total of 2.12 per cent of Aer Lingus shares, according to the stock exchange.
Ryanair last Thursday launched a €1.4 billion, or €2.80 per share, bid for Aer Lingus, shortly after the airline floated on the stock exchange at €2.20.
Ryanair currently holds a 19.2 per cent stake in the airline and wants to buy at least 50 per cent. The Aer Lingus pilots and other opponents of the takeover believe that if they can buy up enough additional shares they can halt that bid.
The Government currently holds a 28 per cent stake, the Aer Lingus Employee Share Ownership Trust (ESOT) and other staff control about 12 per cent and the remaining shares areheld by institutions.
With the pilots, the ESOT and the Government holding almost 42 per cent of the company, it could now prove difficult for Ryanair to reach 50 per cent based on its current offer.
There were also signs last night the ESOT may increase its stake.
Minister for Finance Brian Cowen told the Dáil today the Government was in favour of a strong, independent Aer Lingus.
The board of Aer Lingus was working to ensure the position of the shareholders is fully protected, he said.
Clearance for any possible merger was the regulatory responsibility of the European Commission, he believed. "The Finance and Transport Departments were working closely with advisors and we will also be consulting with the Attorney General," Mr Cowen added.
Labour Party leader Pat Rabbitte claimed up to €30 million euro was spent on advisors to the public flotation of Aer Lingus.
"We are heading into a situation now of a single private monopoly in the aviation sector," he added.
"Of all the hapless ministers in this hapless Government, [Transport] Minister Cullen is the most accident-prone."