Ryanair has made a new take over bid Aer Lingus offering €1.40 per share.

This would value Aer Lingus at €748 million and represents the second time the carrier has made a merger offer for its Irish rival.

Ryanair chief executive Michael O’Leary said: “This proposed merger of Ryanair and Aer Lingus will form one Irish airline group with the financial strength to compete with Europe’s three major airline groups - Air France, British Airways and Lufthansa.”

“The world has changed dramatically over the past two years, as high oil prices and deep recession have caused a flood of airline bankruptcies, consolidations and capacity cutbacks. Aer Lingus, as a small, stand alone, regional airline has been marginalised and bypassed as most other EU flag carriers consolidate.”

Source: Routes News