Ryanair confirmed this morning that its shareholders have approved the airline's bid for rival Aer Lingus.
Ryanair launched the €1.48 billion hostile bid in October, two weeks after Aer Lingus floated on the Irish Stock Exchange.
At an Extraordinary General Meeting in Dublin today, shareholders also approved a share split, meaning that each ordinary Ryanair share will be split in two. This will happen in the first three months of 2007.
Ryanair also told shareholders that it would be issuing another letter to shareholders in Aer Lingus tomorrow, advising them to accept its offer.
Chief executive Michael O'Leary accepted that it was 'highly unlikely' that the bid would be accepted before the deadline of December 22.
At today's EGM, Mr O'Leary launched another attack on the credibility of management at Aer Lingus. He accused Aer Lingus bosses of misleading the public at the time of the company's floatation.
He said that Aer Lingus management had backed a share price of €2.20, yet refused Ryanair's offer of €2.80, claiming that it seriously undervalued the airline.
The Ryanair CEO said that Aer Lingus shareholders should be wary of taking advice from the board. He also accused the current board of mismanaging the airline, claiming that the company could not be run on a consensual basis with unions.
When asked if he would expect a seat on the Aer Lingus board, Michael O'Leary said he would not expect one unless the company held 50.1% of the airline's shares. He added that like Groucho Marx 'he would be reluctant to be a member of any club that would have him'.
Ryanair also confirmed at today's EGM that it had hedged 18% its fuel requirements for January to March 2008 at a cost per barrel which represents a 10% reduction on the first three months of 2007.
Ryanair shares closed 35 cent higher at €9.95 in Dublin this evening.
