DealBook: Ryanair Offers $883 Million for Aer Lingus

Britain's competition regulator said Thursday it had opened a probe into low-cost airline Ryanair's ownership of a major stake in its Irish rival Aer Lingus.The Office of Fair Trading (OFT) said it had opened a probe into the situation which dates from Ryanair becoming the top shareholder in Aer Lingus during its 2006 privatisation with a 30 percent holding.Ryanair has since tried twice to take majority control of Aer Lingus but was thwarted by the European Commission and the Irish government, which still holds a 25 percent stake in the carrier.

Leading European budget airline Ryanair offers a 38% premium over Aer Lingus' current share price.

Airline takes action after rejection by

Low-cost airline Ryanair plans to make a 694-million-euro ($881 million) bid for its rival airline Aer Lingus in what it said Tuesday was an opportunity to form one strong Irish airline.Ryanair said in a statement to the Irish Stock Exchange that it intended to make an all-cash offer through a wholly owned subsidiary, Coinside, of 1.30 euros per share.It said the offer was a 38.3 percent premium over Tuesday's Aer Lingus share price and a 46.7 percent premium over the average price for the last six months.

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Ryanair Holdings of Ireland said it intends to offer $873 million to purchase rival airline Aer Lingus in a push to create a single, strong Irish carrier.

Ryanair Holdings of Ireland said it intends to offer $873 million to purchase rival airline Aer Lingus in a push to create a single, strong Irish carrier.