BRUSSELS/DUBLIN - The European Commission has formally expressed antitrust concerns to Ryanair about its possible takeover of rival Irish airline Aer Lingus, sources familiar with the situation said on Friday.
Ryanair will be given an opportunity to respond to the charges, listed in a statement of objections from the European Union's regulatory arm, and to have a closed hearing.
Bloomberg News reported that it had obtained a copy of the statement of objections, which ran to 265 pages.
The proposed merger "is likely to significantly impede effective competition" by "eliminating the most credible potential entrant" on 37 routes to and from Dublin, Bloomberg quoted the charge sheet as saying.
Europe's largest low-cost carrier responded angrily both to what it said was a "leak" of confidential material and to the EU comments themselves.
It said the findings suited the political interests of the Irish government, which opposes the bid, rather than the best interests of consumers.
The "bizarre" findings also flew in the face of a wave of consolidations taking place in the European airline industry, Ryanair said in a statement.
"This merger should be approved without further delay or interference," it said.
Shares in Ryanair were down 1 percent at 5.84 euros in Dublin by 1410 GMT, while Aer Lingus stock was 2.15 percent lower at 3.18 euros.
The Commission has until June 13 to decide whether the proposed bid is compatible with EU merger laws, whether problems may be resolved through possible changes in the proposed transaction, or whether it must be rejected outright.
The 1.48 billion euro ($1.97 billion) bid lapsed automatically in December when authorities decided to conduct an in-depth investigation, but the company had said it intended to make a second offer.
Ryanair's bid was made shortly after Aer Lingus's stock market listing last year.
The hostile bid faced an uphill struggle from the start amid opposition from key shareholders, including the Irish government, which remains Aer Lingus's biggest shareholder with a stake of just over 25 percent.
Ryanair had said it intended to make a second offer, perhaps as early as May, if the Commission gave it a green light.
But Chief Executive Michael O'Leary has said much would depend on what conditions the EU laid down for any deal.
He has not said whether he would withdraw the deal if it appeared that he would lose.
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