Aer Lingus has issued a letter to its shareholders urging them to reject a bid by Ryanair for the business.
The low fares airline has offered €694 million for Aer Lingus.
That is or €1.30 cent per share.
The letter came from the Chairman of the board of Aer Lingus Colm Barrington.
It says the offer undervalues the airline and is likely to be rejected again by the European Commission on competition grounds.
The circular says the board has received legal advice that the reasons for prohibition are “even stronger now than they were when Ryanair’s first offer was prohibited by the European Commission in 2007″.
The board has been advised by Rothschild, Goodbody Corporate Finance and UBS Limited.
Meanwhile Aer Lingus has reported a pre-tax loss of €24.5 million for the first half of the year.
Chief Executive Christoph Mueller told Brekafast here on Newstalk that is down to 2 factors.
