Shares in budget airline easyJet (LON: EZJ) surged more than 11% on Monday after US alternative investment manager Castlelake, L.P. confirmed it is weighing a possible takeover bid for the FTSE-listed carrier.
The stock opened at 444p and climbed as high as 449.9p in early London trading — a jump of around 46p from Friday’s close of 398p — as investors rushed to price in a potential acquisition premium. Volume was elevated, with over 9.3 million shares changing hands.
Castlelake first disclosed its interest, but the speculation intensified after the firm revealed it already holds a 2.14% stake in easyJet — equivalent to around 16.2 million ordinary shares.
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Critically, Castlelake disclosed that under UK Takeover Code rules, any formal offer it were to make would need to be pitched at no less than 403.23p per share, effectively setting a floor for deal talks.
The deadline for Castlelake to either announce a firm intention to bid or walk away is 5.00 p.m. on 26 June 2026, under Rule 2.6(a) of the Takeover Code.
EasyJet’s board responded cautiously but kept the door open, stating it “will consider any proposal, should one be made” while emphasising its duty to maximise shareholder value.
In a pointed response, directors flagged what they called the “highly opportunistic timing” of the approach, arguing the share price has been “temporarily depressed” by Middle East tensions and their impact on customer confidence and jet fuel costs.
The board also stressed easyJet’s “investment grade balance sheet,” net cash position, and its medium-term ambition to deliver more than £1 billion in profit before tax.
EasyJet shares had traded as low as 332.6p earlier in May.
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