Dan Coatsworth, head of markets at AJ Bell, said: “EasyJet has changed its tune regarding a takeover. While another bid from Castlelake has been rejected, EasyJet is to give its suitor more data on which to carry out due diligence. The airline is effectively saying ‘here’s more information, now make a proper offer’. That’s very different to its previous stance of saying ‘go away, we’re not interested’.
“Castlelake is acting like someone at an auction who will keep bidding until they get what they want. Whereas many takeover situations fall apart quickly because the bidder shows financial discipline and will only pay so much, four bids in quick succession from Castlelake implies it is deadly serious about getting the prize.
“EasyJet founder Stelios Haji-Ioannou and his family are still the biggest shareholders in the airline and are unlikely to accept anything other than top dollar for their stake.
“It would be a shame to lose EasyJet from the UK stock market. It is exactly the type of company that resonates with the public looking to invest in brands they know and trust. EasyJet has good long-term growth prospects, is a well-run business, and pre-bid situation traded on an attractive valuation – all things desired by investors when looking for opportunities.”
Contact details are available to account holders.
Create a free account to get in touch with this expert.