Businessman Denis O'Brien has spent up to €32 million building up a 2.1 per cent stake in Aer Lingus as the battle for control of the former State-owned carrier intensifies.
The future control and direction of Aer Lingus is now effectively between Ryanair on one side and a loose alliance of the Government, staff, pilots and Mr O'Brien on the other. This group between them control approximately 45 per cent of the shares, with Ryanair holding just 19.2 per cent.
Ryanair's ambition was to at least gain over 50 per cent of the shares, but this will be difficult to achieve unless it significantly increases its current offer of €2.80 per share.
Mr O'Brien in a statement last night said he was taking the step because he believed in competition. "Aer Lingus is a company with a national and international reputation. I am pleased to be giving my support to the staff, the pilots and the board and management of the airline," he added. It is understood the shares were bought at two price levels, €2.90 and €2.95.
Aer Lingus declined to comment, but in private its senior management expressed the view that the Ryanair bid can now be resisted. However an improved offer from Ryanair could make their position less secure.
Ryanair's chief executive Michael O'Leary is currently in the US, but the company will announce a range of new routes out of Ireland today at a previously arranged press conference.
The company is likely to face questions about how it can mount a successful takeover with such a large segment of the shareholder base opposing its move.
It is not clear whether Mr O'Brien has concluded his buying in Aer Lingus, but it is normal for a buyer to purchase shares in several tranches.
The danger for those who have purchased shares as part of a defence of the Ryanair bid is that if Ryanair withdraws its offer, the share price could drop sharply, leaving some of the most recent shareholders nursing major losses.