Originally Posted by
INLAK
Rumours this afternoon say a certain Middle Eastern company is trading heavily for EI shares.
Where did you hear that? It would make perfect sense - what MoL was saying on the conference call about applying his low-cost carrier model onto Aer Lingus and leave everything as is (including LHR slots) is, quite frankly, bullsh*t!
Here's the math part:
Aer Lingus has roughly €1 billion of cash
The value of their slots at LHR would probably fetch at least €500m in an open auction to the highest bidder.
That works out to about €2.90/share, over €0.10 more than MoL is offering and then of course there's the value to the rest of the business...
Clever move. Cue up the bidding war! Time to fasten those seatbelts, could be a few bumps ahead!
