EasyJet says bid from Castlelake would be 'highly opportunistic'

(Sharecast News) - EasyJet said on Monday that it is not in talks with Castlelake after the US investment firm announced late on Friday that it was in the early stages of considering a possible offer for the budget airline.

"The board of easyJet has not had any discussions with, nor received any approach or proposal from Castlelake," it said.

"The board is clear in its duty of aiming to maximise shareholder value and will consider any proposal, should one be made. In any assessment, the board will be especially mindful of its valuation and deliverability."

The statement came after Castlelake said late on Friday that it was considering a bid, sending US shares of easyJet soaring.

EasyJet noted the "highly opportunistic" timing, pointing to the fact that its share price is "temporarily depressed" due to the current situation in the Middle East and its impact on customer confidence and jet fuel prices.

The company also noted the "considerable" regulatory, financial and other execution challenges associated with a potential takeover of easyJet.

"EasyJet is in a position of strength, underpinned by an investment grade balance sheet with a net cash position, alongside strong customer satisfaction and high employee engagement," it said. "The board remains highly confident in easyJet's strategy and its ability to deliver attractive long-term value for shareholders. The company remains focused on executing its medium-term target of delivering greater than £1 billion profit before tax."

EasyJet said there can be no certainty that an offer will be made, nor as to the terms on which any offer might be made.

Under UK takeover rules, Castlelake has until 1700 BST on 26 June to announce a firm offer or walk away.

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