The Irish Stock Exchange watchdog on takeover deals has said Ryanair broke stock exchange rules when it gave a number of commitments in relation to its Aer Lingus takeover bid.
Last week Ryanair said it would give the Government control over Aer Lingus' slots at Heathrow Airport.
It also claimed it would cut the airline's short-haul fares by 5% and eliminate Aer Lingus fuel surcharges.
However, the Irish Takeover Panel said these offers breached stock exchange rules as they were arrangements with one shareholder, the Government, and were not being extended to all shareholders.
It has prohibited Ryanair from giving these commitments as part of any offer for Aer Lingus.
Morgan Stanley & Co and Davy Corporate Finance, financial advisers to Ryanair, said in a statement: “The effect of today’s decision by the Irish Takeover Panel seems to render the Minister for Transport as an inappropriate representative of consumer and stakeholder interests in Aer Lingus during an offer period, while the Minister for Finance remains a shareholder in Aer Lingus.
'This would appear to prevent the Minister for Transport or the Government securing the Heathrow slots or Ireland’s connectivity (in line with national aviation policy), with any party who wishes to merge with or acquire Aer Lingus.'
They also said Ryanair intended to proceed with the proposed offer in a form consistent with the constraints imposed by the Irish Takeover Panel
