Taildragger is Spot On.
Taildragger is spot on. Who is advising Ryanair? What will the combined balance sheets look like? My guess (and I havent looked at my own consolidation yet) is that Ryanair's balance sheet is pretty weak and that if the can get hold of EI for a pittance, they can shore up their own balance sheet.
As for "economies of scale" thats BS. Ryanair is already large enough to have "economies of scale" and in fact once you reach a certain size, you get diminishing returns from growing further.
If I was the Board of EI right now, I would have already commisioned my own analysis of Ryanairs current financial position plus my own analysis of EI's value.
If you can then prove that the whole of a merged EI and Ryanair is less than the sum of its parts then voila! Tiny Rolands did this to Bond Corporation when Bond tried to take over Lonrho many years ago - it was the start of the downward Bond spiral.
Last edited by Sunfish; 5th Oct 2006 at 22:23.