Aer Lingus says the Ryanair bid for the airline significantly undervalues the company.

The former state carrier is reiterating its stance and urging staff to reject the bid.

Aer Lingus says there has been no new information from Ryanair to change their view.

It adds “The Board’s unanimous view is that Ryanair’s Offer to acquire control of Aer Lingus for €1.30 per share fundamentally undervalues Aer Lingus and represents a significant discount to the intrinsic value of the business”.

It continues to say that “the Board remains of the view that Ryanair’s Offer is not in the interests of shareholders and…due to the scale and extent of competition issues, is likely once more to be prohibited by the European Commission”.

Newstalk’s business editor Ian Guider explained the development to Breakfast.