EasyJet describes possible takeover bid received from buyer as 'opportunistic'
British low-cost carrier EasyJet said a possible takeover approach it had received was 'opportunistic'. The unnamed bidder is reported to be a Middle Eastern consortium. EasyJet shares closed up 6.5% in London.
BBC BusinessLondon-listed EasyJet has said that a possible takeover approach it had received is 'opportunistic and does not reflect the long-term value of the company'. According to BBC Business, preliminary talks have not yet identified the bidder, but financial advisers indicate a Middle Eastern consortium could lead the move.
Berenberg analyst Adrian Yanoshik wrote in a client note that 'the aviation consolidation cycle is accelerating and EasyJet is on the watch-list'. Mark Manduca of Citi said 'EasyJet carries strategic value for post-Brexit European continental operations'. EasyJet CEO Kenton Jarvis wrote to investors that 'the board will consider any bid that creates value for shareholders; however, the current move falls below that threshold'.
The UK City Takeover Panel confirmed that the 28-day 'put up or shut up' deadline has begun. EasyJet shares closed 6.5% higher in London at 478 pence. IATA director general Willie Walsh said sector consolidation 'could be positive for overall European capacity efficiency'. This report does not constitute investment advice.
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