EasyJet has rejected a potential acquisition offer from a prominent US investment company, labeling it as “highly opportunistic” and affirming that no talks had occurred between the two parties. The low-cost airline disclosed that Castlelake’s interest arose as its stock faced pressure due to concerns about the impact of the Iran conflict on fuel prices and travel demand.
Castlelake disclosed on Friday, after the close of the London stock market, that it was in the early stages of evaluating a bid for easyJet following recent speculation. The company emphasized that it had not approached easyJet’s Board and cautioned that there was no guarantee a bid would materialize.
In accordance with takeover regulations, Castlelake has until June 26 to either declare a firm intention to make an offer or withdraw. EasyJet stated on Monday that no discussions, approaches, or proposals had been received from Castlelake. The airline noted that the timing of Castlelake’s interest coincided with a temporary decline in easyJet’s share price due to the Middle East situation affecting customer confidence and jet fuel costs.
Based in Luton, easyJet also acknowledged the significant regulatory, financial, and operational obstacles linked with a potential takeover. Despite reporting first-half losses of £552 million, a 40% rise from the previous year, the airline highlighted robust demand for summer holidays, with travelers increasingly booking closer to departure dates.
According to Mr. Jarvis, demand remains strong, particularly in the last-minute booking market. While caution persists among customers for future bookings, he anticipates a continuation of the strong late booking trend throughout the summer.
