Ryanair could still be forced to sell most of its stake in Aer Lingus in the latest hurdle in IAG’s planned takeover of Aer Lingus.
According to reports in the Irish Independent, the Irish Government has called on the UK’s Competition and Markets Authority (CMA) to force Michael O’Leary’s airline to cut its stake from nearly 30% to no more than 5%.
The newspaper says a letter from Ethna Brogan, a senior Department of Transport civil servant, urges the competition watchdog to stick to its previously stated position over Ryanair’s shareholding.
One of the competition watchdog’s previous arguments was that Ryanair’s stake in Aer Lingus would deter any interest from an airline buyer.
Ryanair claimed that the fact that IAG is now making a bid to buy Aer Lingus means it no longer needs to cut its stake.
But Brogan said the Irish Government is unlikely to sell its 25% shareholding in Aer Lingus while Ryanair continues to be a significant minority shareholder.
IAG has asked the CMA to give Ryanair permission to sell the entire Aer Lingus holding to IAG.
