Aer Lingus's share price has fallen sharply in Dublin following the collapse of Ryanair's bid to take over its rival. Aer Lingus shares closed 13% lower at €1.18 in Dublin this afternoon.
The Government yesterday rejected Ryanair's offer of €1.40 per share for its 25% shareholding in Aer Lingus.
Transport Minister Noel Dempsey said the Government believed the Ryanair offer greatly undervalued Aer Lingus and would have a significant negative impact on competition in the market.
Ryanair said it was disappointed by the Government decision, but would respect and abide by it. The airline said the decision meant Ryanair's offer would not be successful, as it could not achieve acceptance by 90% of shareholders.
