DUBLIN (AP) — Leading European budget airline Ryanair launched a surprise new takeover bid Tuesday for its Irish rival Aer Lingus and called on the cash-strapped Irish government to sell its key stake this time.

Dublin-based Ryanair said it would offer €1.30 ($1.65) per share, a 38 percent premium over Aer Lingus’ current share price, in a deal that would value the airline at €694 million ($880.7 million).