Ireland Says Not Guided By Just Money On Aer Lingus

Price will not be the sole basis for Ireland's response to low-cost carrier Ryanair's EUR750 million euro (USD$1 billion) offer for Aer Lingus though it needs the extra funds, Transport Minister Noel Dempsey said.
Ireland, which rejected Ryanair's earlier bid for domestic rival Aer Lingus in 2006, owns 25 percent of the former state carrier and is looking for ways to cut a budget deficit which is set to be three times the level allowed by EU rules this year.
"Any money that we'll get into the government coffers would be very much appreciated at this time, but short-term decisions are not my style in relation to things like this," Dempsey said on Wednesday.
"We are certainly not guided by money alone. There is aviation policy, there is airport policy, regional policy that has to be taken into consideration," Dempsey told public broadcaster RTE.
"(The response) is something that is yet to be finalised and considered by the government," he said.
Analysts at Merrion Capital said on Tuesday that Ryanair would raise its offer substantially in January, and that could move shareholders to accept it.
Aer Lingus has said the current offer undervalued it.
Ryanair has said repeatedly that its offer of 1.40 euros per share was generous and it was confident of its success. But holders of only 0.01 percent of Aer Lingus shares accepted by an initial January 5 deadline, which Ryanair extended to February 13.