Michael O’Leary slams rival
RYANAIR boss Michael O’Leary stepped up the pressure on rival Aer Lingus yesterday by calling on it to pay out a special dividend.
O’Leary, whose budget flyer is the biggest shareholder of Aer Lingus with nearly 30 per cent, said it should pay out a e110million (£95.7million) dividend to prove it was “fully dedicated” to enhancing shareholder value and to lift its struggling share price.
In a letter to Aer Lingus chairman Colm Barrington, O’Leary said the company’s share price had fallen over 80 per cent since 2007 and its stock market value had declined by 78 per cent to e320million.
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“Almost all of your initiatives over the past five years, such as ordering e2.4billion of long-haul aircraft at the top of the cycle, have destroyed shareholder value. Sadly with the present market cap and net cash of over e350million the market now attributes a value to the Aer Lingus business of less than zero,” he said.
Ryanair, which has failed with two Aer Lingus takeover attempts, has ruled out buying the stake.
O’Leary told the Ryanair annual meeting that British Airways was the most likely buyer of the Irish government’s 25 per cent stake in Aer Lingus. Ryanair, which has failed with two Aer Lingus takeover attempts, has ruled out buying the stake.
