The board of Aer Lingus Group has urged shareholders to reject Ryanair's acquisition offer to take control of the company for €1.30 per share.

Aer Lingus, which delivered a €130m turnaround in operating performance between 2009 and 2011, claims that the offer fundamentally "undervalues" the company and would amount to a discount of 34 per cent to Aer Lingus’s gross cash per share of €1.96, as well as a discount of 12 per cent to Aer Lingus’s net asset value per share of €1.48.

This is the third offer in six years from Ryanair's chief executive, Michael O'Leary, to acquire the former state carrier.