Easyjet fires back at 'highly opportunistic' US takeover bid: Here's why

EasyJet has slammed US takeover bid of £3bn as a ‘highly opportunistic.’

As per the latest updates, the shares of the budget airline jumped to their highest level in three months amid the takeover buzz.

The Castlelake, a private credit firm showed interest in acquiring easyJet last week.

On Monday, June 1, the company issued a statement saying it had already purchased a 2.14% stake in the airline and its takeover offer would be estimated at 403 pence per share or roughly at £3bn overall.

The airline criticized its potential buyer, saying it was “highly opportunistic timing” as its share price was “temporarily depressed due to the current situation in the Middle East and its impact on consumer confidence and jet fuel prices.”

Before the takeover news arrived in the market, the easyJet shares plunged to at least a fifth of their total value price since the start of the year.

Despite this, the company added, its board was confident in its strategy based on company’s cash flow and profit outlook.

In the early hours of Monday trading, the budget airline shares spiked by as much as 12%, with the share price climbing up to 444.7 pence per share, well above Castlelake’s minimum potential offer level.

However, later, the share price dropped down slightly but remained higher by about 10%.

As per the City takeover rules, Castlelake has a deadline until 5 pm on June 26 to make a final call to acquire easyJet.

The Minneapolis based firm controls $36bn (27bn) of client assests.