EasyJet is an obvious takeover target, but US approach may not be a flyer
Summary
EasyJet’s share price rose a little after news of a possible takeover bid from US investment fund Castlelake, but the market remains doubtful. Key questions include whether both sides agree on the price, how Castlelake might meet European ownership rules, and the opinion of easyJet’s founder who owns a significant share.Key Facts
- EasyJet’s share price increased about 10% on news of a possible takeover by Castlelake.
- Analysts question whether Castlelake and easyJet agree on the company’s value.
- EasyJet’s profits have fallen sharply this year but aim to recover over time.
- The value of easyJet’s planes and airport slots is estimated higher than the current share price.
- European rules require majority UK/EU ownership of easyJet, complicating a US takeover.
- Castlelake may need a European partner to meet ownership rules.
- EasyJet’s founder and family own 15% of the company and can influence decisions.
- Castlelake has bought a 2% stake but has shared few details about its takeover plan.
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