Stelios eyes ‘eyewatering’ Easyjet price as US firm has its fourth bid for the budget
The founder of airline Easyjet is holding out for an ‘eyewatering’ bid as an American predator steps up its pursuit.
A source close to Sir Stelios Haji-Ioannou, who set the firm up in 1995 and still holds a 15 per cent stake, suggested he would be willing to back a takeover deal if the price is right.
‘It would need to be an eyewatering large price to persuade him and the family to sell,’ the source told the Mail.
Easyjet has rejected a fourth proposal, worth £4.9billion, from US firm Castlelake – but left the door open.
The airline dismissed the 650p-a-share offer, saying it ‘substantially’ undervalues the company.
But it raised hopes of a deal after it said it would provide Castlelake with ‘limited commercial information’ which ‘might produce a more attractive proposal that better reflects the value of Easyjet and its prospects’.
Cleared for take-off: Easyjet founder Sir Stelios Haji-Ioannou, pictured, who still holds a 15% stake, suggested he would be willing to back a takeover deal if the price is right
Easyjet also asked takeover regulators to extend the deadline for Castlelake to make a firm offer or walk away, from today to 5pm on July 5.
Chris Beauchamp, chief market analyst at IG, said: ‘Easyjet’s board might be making a decent showing of rejecting the bid. The deadline extension has been taken as a sign some kind of deal is doable.’
Easyjet shares jumped 6.4 per cent, or 34.6p, to 574.2p, and are now up around 70 per cent in just over a month.
Easyjet dismissed Castlelake’s third bid, worth £4.7bn, accusing the Americans of trying to buy the airline ‘on the cheap’.
But Dan Coatsworth, head of markets at AJ Bell, said: ‘It has changed its tune. The airline is effectively saying: ‘Here’s more information, now make a proper offer.’
‘Easyjet founder Stelios Haji-Ioannou and his family are still the biggest shareholders and unlikely to accept anything other than top dollar.’
Castlelake, with a 2.14 per cent stake, has tabled four offers, of between 560p a share and 650p.
Easyjet is said to be holding out for at least 700p a share – or £5.3billion. Castlelake has proposed making the purchase through a new group in which it holds a 49 per cent stake with the other 51 per cent held by EU citizens.
Under Brussels rules, airlines must be majority-owned by citizens of the EU.
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