US firm buys 3.07% stake in Ryanair
A US hedge fund has snapped up a €500m (£455m) stake in Ryanair, betting that the airline is undervalued.
Chicago-based Harris Associates revealed in filing with the stock exchange yesterday that it now owns 3.07% of the airline.
The US activist firm touts itself as a value investor and has previously held stakes in companies such as Bank of Ireland.
Harris Associates said it breached the 3% ownership mark where it has to inform the stock market of its Ryanair holding on August 22. It now owns 35.2m shares in the airline.
It could already be sitting on a paper profit, with shares in having climbed more than 2% at one stage yesterday. That valued the shares held by Harris Associates at just over €500m. The shares rose after Ryanair said it had sealed a collective labour agreement with its pilots in Italy.