Price - The perception of value.
So two areas of question arise:-
Why does MO'L think that the business is worth more than the institutional investors thought? What is the extra value of the business to him, as opposed to anyone else?
Why does he think that it is worth spending €1.4bn buying this business rather than spending the same amount of money growing his own at the expense of this business?
Financial experts will no doubt have some views about whether, and if so what, this says about the health of and organic growth prospects for Ryanair on its own.
1) Because he can buy his only competitor in Ireland. Even without this Ryanair bid, Aer Lingus was the most profitable national airline in Europe on a margin basis. As it is , it is a great business and definately dumbed down for the floatation over the last few years. This was started by WW when he tried to buy it cheap himself. The real potential of Aer Lingus has yet to be realised.
It buys MOL huge clout in Irish Aviation decision making with respect to the IAA and Dublin Airport Authority. It buys him many buildings, equipment and facilities at Dublin Airport which he can use for Ryanair.
2) Yes very interesting point, but this question is surely asked of all hostile takeovers of companies?
The Heathrow slots is an interesting point. The Irish government has put in safeguards to prevent the slots being sold immediately to the highest bidders, Etihad, Emirates, and Qatar spring to mind. These slots will be worth even more with US/EU open skies when there could be the potential for any carrier with slots at Heathrow to fly anywhere it chooses!!!!