Ryanair seeks uplift from turbulence

Airline takes action after rejection by

DUBLIN (Reuters) - Ryanair may mount a legal c

Ryanair, the shamelessly huckstering Irish airline that revolutionized European travel with often dirt-cheap fares to former Soviet airbases and other remote strips of tarmac, is pushing its third try for a takeover and exterminiation of its beleagured rival Aer Lingus, of which it already holds 30 percent stake. and stay tuned for a ruling by the EU competition authorities on February 6. Few expect a positive ruling, but Ryanair's CEO Michael O'Leary is a man who never backs down from a fight or a tirade against regulators  with an outrageousness that no other CEO would dare.

The European Union's general court barred no-frills airline Ryanair from taking over Aer Lingus on Tuesday but said Ryanair could keep a minority stake in its Irish rival.Ryanair had launched a takeover bid of Aer Lingus in 2006, but it was blocked by the European Union's competition watchdog, the European Commission, which deemed that it was incompatible with the common market.In turn, Aer Lingus asked the commission to order Ryanair to divest all of its shares in Aer Lingus, which had risen to nearly 30 percent. The commission rejected the Aer Lingus request in 2007.

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

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.

The European low cost airline Ryanair on Tuesday offered 694 million euros ($883 million) to buy the Irish carrier Aer Lingus, the latest in a number of deals in the fast-consolidating airline industry.