you'd have to say Aer Lingus were caught with their trousers down! busy worry about been taken over by foreign competition whilst been totally blind to the competition right on their own doorstep.
Dermot Desmond has now waded into the fray with stated intentions of keeping EI independent. This will spook FR.
Are FR just waiting for the share price to rise enough that they can sell with an overall profit?
Was it a "wound & walk away" ?
Did FR f**k up in their assumption of the response to their bid?
What are your opinions?
EI will get out of it with 2 black eyes or in FR control - that's the point. FR has bags of money to spend on takeover advisers etc., EI doesn't, and they are their main competitors out of their biggest base. Now EI is running around like a headless chicken chopping staff and promising god knows what to the unions to make it happen.
FR may have bags of money, that they have accumulated due to their habit of not paying dividends to their shareholders. The shareholders regard this cash as "theirs" and will want to see a reasonable return on it from this escapade. It now looks like the FR take over bid will fail and the EI share price will settle back lower than the FR bid price of EU2.80, hence in the short term FR owning negative equity in EI. Factor in the "advisors" fees etc and FR are nursing a bloody nose?
EI meanwhile have been handed a perfect backdrop to push in cost cutting measures with the unions running scared of FR getting involved if EI doesn't lean out.
40 MILLION Euros
lets not forget the new pay deal that Fr pilots are looking for , still not above industry standard but a good increase for them.
now tell me which airlines share price is going to get a new arsehole ripped ???
Ryanair is about to be told to start acting like a real employer by the supreme court and labour court. Watch their cost base rise to a more reasonable level when this happens.
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