Shares in Aer Lingus have lost over a fifth of their value in Dublin this morning Ryanair Holdings said that its bid for the company wouldn’t succeed following the Government’s rejection of its takeover offer.
At 9.30am Aer Lingus shares were 22 per cent lower at €1.05, far below the €1.40 offer price in Ryanair's €748 million offer.
Ryanair accepted defeat in its latest bid for Aer Lingus after the Government last night rejected its bid saying it Ryanair "greatly undervalued" the former State airline.
The Government holds a 25.12 per cent stake in Aer Lingus and its rejection of the Ryanair offer meant it could not achieve its aim of a 90 per cent stake.
Ryanair holds 29.8 of Aer Lingus and said it plans to continue as a shareholder.