Ryanair accuses Aer Lingus of "market manipulation"

LCC says rival misled shareholders

Ryanair has said it plans to lodge a formal complaint against Aer Lingus of market manipulation following the release of its 2008 financial results.

Michael O'Leary, Ryanair's ceo, accused Aer Lingus of misleading shareholders in its defence against the unsuccessful €748m takeover attempt.

According to Ryanair, Aer Lingus at the time said its financial forecast was strong, claiming it to be worth more than the €1.40 per share bid.

But Aer Lingus results released last week caused its share price to plummet 27% to less than half Ryanair's offer.

"We are preparing a formal complaint of market manipulation," Ryanair's chief executive Michael O'Leary told Reuters today (March 16).

"I wouldn't be surprised if certain of Aer Lingus shareholders were considering taking legal action against the board."

Last week, Aer Lingus announced a post-tax loss of €108m for 2008, compared with a €105m profit in 2007.

The Irish carrier said its operating loss for the 12 months to the end of December was €17.6m.

It said it expected average fare levels to fall by "at least" 10% in 2009 and that it was "unlikely" to meet its prediction of a pre-tax profit for this year.

Ryanair, which has a 29.82% stake in Aer Lingus, called on the airline to apologise to shareholders for misleading them.

Aer Lingus' share price at 1339 GMT today was €0.57, unchanged from the previous day's close.

Aer Lingus was unavailable for comment.

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