Bid for Aer Lingus

Aer Lingus has urged shareholders to reject budget airline Ryanair's latest €694m (£445m) takeover offer for the airline on the grounds that it "fundamentally undervalues" the business.

The board of Aer Lingus also said it has received legal advice that the UK Competition Commission would again block Ryanair's offer to take control of the company.

Its rejection statement followed Ryanair, which has a 29.82 per cent stake in Aer Lingus, issuing a 182-page offer document that claimed a tie-up between the two Irish airlines would create more jobs.

Its offer of €1.30 a share is the third it has made in six years.