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Aer Lingus rejects Ryanair’s purchase offer

The Irish airline claims that accepting Ryanair's takeover offer would "undervalue" the company.

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.