By Sarah Young
LONDON, April 19 (Reuters) - European low-cost airlineeasyJet's founder and biggest shareholder SteliosHaji-ioannou would oppose any move by the company to make anacquisition, he said on Tuesday, following media reports that itwas looking at making a bid for smaller rival Monarch.
The Sunday Times newspaper said that easyJet was eyeingMonarch Airlines, one of a number of stories aboutMonarch to emerge in recent days.
Another media report said that Monarch, the former holidaysairline restructured by private equity investor Greybull Capitalas a low-cost scheduled carrier after rescuing it in 2014, waslooking at buying other European airlines.
Haji-ioannou, better known as Stelios, who founded theairline in 1995 and whose family still holds a 34 percent stake,said easyJet should stay clear of takeovers.
"My personal view as a shareholder is that easyJet shouldnot do any acquisitions," he said in an emailed statement.
"They usually destroy shareholder value."
Stelios added, however, that as the owner of the "easy"brand, which includes hotels, buses and car hire, he wouldbenefit from anything that increased easyJet's revenues becauseit would mean increased royalties for easyGroup, which he owns.
EasyJet declined to comment.
Since he quit easyJet's board in 2010 after a row overstrategy, Stelios has been vocal in his criticism of theairline's plans, including fleet expansion, executive pay anddividend policy.
easyJet, Europe's second biggest budget airline behindRyanair, had earlier declined to comment on the Monarchrumours.
Monarch, with just over 30 aircraft, would be a small dealin comparison to the 240-plus fleet of easyJet.
Cantor analyst Robin Byde said talk of the potential tie-upwas plausible. He expected an offer for Monarch to have anenterprise value of about 400 million pounds, but warned thatany deal would be scrutinised by competition authorities.
RBC analyst Damian Brewer added that easyJet may want to getits hands on Monarch to strengthen its position at LondonGatwick, easyJet's biggest base, although Monarch's main base isLondon Luton.
"Monarch's Gatwick (runway) slots offer potentialopportunity for easyJet if the company did not overpay," hesaid.
Any easyJet takeover of Monarch may or may not needshareholder approval depending on whether the deal wasclassified as a class 1 or class 2 transaction under UK rules. (Editing by Greg Mahlich)
easyJet (EZJ)