Response to UK Competition Commission findings on Ryanair and Aer Lingus

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UK law allows merger control scrutiny of minority shareholdings which do not count as mergers under EU rules.

Alec Burnside, Managing Partner of Cadwalader's Brussels office, and counsel to Aer Lingus, said: "Ryanair's 29.82% shareholding has been used as a Trojan horse against Aer Lingus for the last seven years since the original 2006 bid. It has been the platform for Ryanair's failed rebids for Aer Lingus in 2008 and 2012. The CC has now found that those rebids have harmed competition between the two rivals. The European Commission needs jurisdiction to scrutinise and protect businesses from anti-competitive minority shareholder situations like this one."

In part as a result of the unique issues presented by this case, the European Commission is currently consulting on whether to change its legislation.

Burnside added: "Cadwalader has been privileged to assist Aer Lingus in this extraordinary odyssey. The case has tested the limits of EU and UK merger review. We are delighted to have been able to find a solution for Aer Lingus through the UK CC when the European Commission was unable to act."

The final report issued by the UK Competition Commission can be found at http://www.competition-commission.org.uk/assets/competitioncommission/docs/2012/ryanair-aer-lingus/130828_ryanair_final_report.pdf

Notes to Editors

About Cadwalader, Wickersham & Taft LLP
Cadwalader, Wickersham & Taft LLP, established in 1792, is one of the world's leading international law firms, with offices in New York, Washington, Charlotte, Houston, London, Hong Kong, Beijing and Brussels. Cadwalader serves a diverse client base, including many of the world's top financial institutions, undertaking business in more than 50 countries in six continents. The firm offers legal expertise in insurance and reinsurance, financial markets, longevity risk, pension fund deficits, antitrust, banking, business fraud, corporate finance, corporate governance, environmental, financial restructuring and reorganizations, healthcare, intellectual property, litigation, mergers and acquisitions, securitization, structured finance, and tax. More information about Cadwalader can be found at www.cadwalader.com.

About UK Competition Commission
The Competition Commission (CC) is an independent public body which helps to ensure healthy competition between companies in the UK for the ultimate benefit of consumers and the economy. It conducts in-depth investigations into mergers and markets and also has certain functions with regard to the major regulated industries.

Contacts:
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Kara Condon+32 (474) 991 060
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