DUBLIN: Budget airline Ryanair will appeal yesterday’s decision by Europe’s anti-monopoly watchdog to block its third takeover bid for Aer Lingus , potentially leaving the fate of its Irish rival in limbo for years. The rebuff was expected after Ryanair said earlier this month the EU Commission had told it of its intention to block the 694-million-euro ($917 million) bid to seize control of Ireland’s 75-year-old former flag carrier.
The veto, which is the first time the Commission has twice rejected a proposed takeover, was expected to force Ryanair chief Michael O’Leary to decide whether to finally set its smaller rival free by selling its 30 percent stake.
But by following through on a threat to try to be the first company in a decade to overturn an EU anti-monopoly decision, Ryanair could tie up the stake for years and stymie the Irish government’s efforts to offload its own 25 percent holding.
“We believe that we have strong grounds for appealing and overturning this politically-inspired prohibition,” a Ryanair spokesman said in a statement.
“We regret that this prohibition is manifestly motivated by narrow political interests rather than competition concerns ... Accordingly, Ryanair has instructed its legal advisers to prepare a comprehensive appeal.”
The bid, described by Ryanair as its third and final effort to takeover its rival, included ceding 43 routes to a newly created Irish subsidiary of British airline Flybe and handing to British Airways the routes Aer Lingus operates from London’s Gatwick Airport.
Norway raises oil and gas estimates
OSLO: Norway yesterday raised its estimate of undiscovered oil and gas by 15 percent, most of it in the waters of the Barents Sea once disputed by Russia. The additional resources, most of which are natural gas, amount to around 2.5 billion barrels of oil equivalent (boe), according to the Norwegian Petroleum Directorate.
The increased reserve estimates follow the 2011 signing of an agreement between Norway and Russia on their maritime border in the Barents Sea after a 40-year dispute, granting the Scandinavian country an area covering some 44,000 sq km.
Agencies
