EasyJet says takeover tilt from US firm would be ‘highly opportunistic’
EasyJet said any takeover would be "highly opportunistic timing when easyJet’s share price is temporarily depressed due to the current situation in the Middle East"
Easyjet has slammed a potential takeover bid by a US firm as "highly opportunistic", as the airline grapples with a slump in summer holiday bookings because of uncertainty caused by the Iran war.
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US Investment firm Castlelake said on Friday that it was considering making an offer for easyJet, but had not yet approached the firm’s board.
But Easyjet hit back on Monday that any takeover would be "highly opportunistic timing when easyJet’s share price is temporarily depressed due to the current situation in the Middle East and its impact on customer confidence and jet fuel prices.”
The Luton-based airline - which has seen its share price drop by 30% in the past year - also warned that any takeover would incur "considerable regulatory, financial and other execution challenges".
However the airline said it has a duty to maximise shareholder value and would “consider any proposal, should one be made.
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Castlelake has until 5pm on June 26 make a firm offer or walk away under UK takeover rules.
The American firm, which confirmed it owns a stake of around 2.14% in easyJet through shares held on behalf of funds it manages, said on Monday any offer would be for “no less than” 403.23p a share, valuing the airline at a minimum of £3.06 billion.
Shares closed on Friday at 398p each.
Shares in FTSE 250-listed easyJet surged by up to 12% in opening trade on Monday. Castlelake revealed news of the potential bid late on Friday.
Last month, easyJet reported that bookings for summer flights were lower than the same point last year because of uncertainty caused by the conflict in the Middle East.
It posted a half-year pre-tax loss of £552 million, compared with a loss of £401 million a year ago.
It's not the first airline takeover attempt by Castlelake, which previously entered talks in January with bankrupt US carrier Spirit Airlines over a possible takeover.
Castlelake has also previously bailed out collapsed Scandinavian Airlines (SAS) and then sold on its shares to Air France-KLM