Easyjet flies on the stock exchange on Castlelake's expression of interest
The US fund must make a proposal by 26 June. According to the company: 'highly opportunistic offer'
by Mara Monti
British low-cost airline easyjet jumped 13% on the stock market after the expression of interest expressed over the weekend by US investment company Castlelake. In a statement to the market this morning following the disclosure of interest, the low cost company's board described the offer as 'highly opportunistic as easyJet's share price is temporarily depressed due to the current situation in the Middle East and its impact on customer confidence and aviation fuel prices'. The company said the board remains confident in the airline's strategy given its cash position and profit outlook.
The investment company said it is considering a possible offer, although it warned that it might not materialise with an offer. This morning the US group announced that it had already acquired 2.14% of easyJet's shares. Castlelake is active in the aviation sector, having worked with Air France-KLM to acquire the Scandinavian airline SAS.
The rise in the airline's shares this morning offset declines of more than 20 per cent since the beginning of the year, bringing its capitalisation to £3.4 billion.
The carrier said it would 'consider any proposal, should one be made', but added that a potential takeover would entail 'significant regulatory, financial and other challenges'. Castlelake has until 26 June to submit a bid, according to UK takeover rules.
EU rules, which still apply to the UK, require that any acquisition by non-European entities must be less than 49%.
