The market price of EI shares has hit 1.30 this morning, in advance of the FY results due later. I predict the price will climb higher.
So, with the share price at 1.31 or above, what is the advantage for a shareholder to sell to FR at 1.30?
O'Leary will have to increase his offer, significantly. As I predicted.
The Irish Government have already said they won't sell to him. Personally I believe they will, but only if the price is right, and that means MONEY.
Lots and lots of MONEY.
Since FR is offering 100M in cash to FlyBE they obviously have it to spend and are willing to spend it. That 100M, if applied to the bid offer price, would increase the offer to 1.50 per share.
Still not good enough, but you can see where this is heading.
Last edited by Meccano; 6th Feb 2013 at 07:53.