LONDON Aer Lingus (AERL.I) urged its shareholders to ignore the latest takeover offer from rival Ryanair (RYA.I) on Wednesday, saying it undervalued the Irish airline and may not be allowed by regulators anyway.
"The board, having considered the offer with its advisers, believes the offer, even if it is capable of completion, undervalues Aer Lingus," it said. "Aer Lingus shareholders are accordingly advised to take no action."
Ryanair, already the largest shareholder in Aer Lingus with a 30 percent stake, announced the surprise bid after markets closed on Tuesday, saying it would pay 1.30 euros ($1.65) per share in a bid to increase its stake to at least 50 percent.
(Reporting by Kate Holton)