EasyJet said interest from US-based investment firm Castlelake emerged as its shares came under pressure over the Iran conflict’s impact on fuel costs and travel demand
EasyJet has dismissed a possible takeover deal from a major US investment firm, branding it “highly opportunistic” and insisting no discussions had taken place between the two sides.
The budget airline said interest from Castlelake emerged as its shares came under pressure from concerns over the Iran conflict’s impact on fuel costs and travel demand.
Castlelake revealed late on Friday, after the stock market close in London, that it was in the early stages of considering an offer for easyJet following recent speculation.
The firm had stressed that “no approach” had been made to the Board of easyJet,” warning there was “no certainty” that a bid would actually happen.
Under takeover rules, Castlelake has until June 26 to either announce a firm intention to make an offer or walk away.
EasyJet said on Monday: “The board of easyJet has not had any discussions with, nor received any approach or proposal from Castlelake.”
It added: “The board notes the 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.”
Luton-based easyJet said it also “notes the considerable regulatory, financial and other execution challenges associated with a potential takeover of easyJet”.
The airline recently reported losses of £552 million for the first half of its financial year – a 40% increase compared with the previous year – but said demand for the summer holidays remains strong, with travellers continuing to book trips closer to departure dates.
Mr Jarvis said: “Demand seems to be very strong in what we call the late market. As we ran through April, demand was very strong for the month of April. We’re seeing it again in May.
“But as you look further out, people are more cautious. People are waiting and watching, but they are booking as as you approach, and I expect that strong late booking market to run through the summer.”
