EasyJet is an obvious takeover target, but US approach may not be a flyer | Nils Pratley
Key points
- A share price gain of only 10% on a possible takeover approach is a meek reaction.
- If the stock market truly believed that Castlelake, a US investment fund, stood a decent chance of buying easyJet, you would expect the targetâs stock to fly significantly higher.
- Scepticism is the right stance until at least three factors become clearer.
- First, would the two sides even be vaguely in the same landing zone on valuation?
- EasyJetâs description of Castlelakeâs timing as âhighly opportunisticâ was boilerplate rhetoric (all bids are opportunistic to a degree) but in this case it is clearly possible that all European airlinesâ prospects could be brighter within a couple of months.
Quick Summary
A share price gain of only 10% on a possible takeover approach is a meek reaction. If the stock market truly believed that Castlelake, a
Why It Matters
This development is important because it may impact public opinion, policy decisions, and future developments related to EasyJet is an obvious takeover target, but US approach may n.
Key Takeaways
- A share price gain of only 10% on a possible takeover approach is a meek reaction.
- If the stock market truly believed that Castlelake, a US investment fund, stood a decent chance of buying easyJet, you would expect the targetâs stock to fly significantly higher.
- Scepticism is the right stance until at least three factors become clearer.
- First, would the two sides even be vaguely in the same landing zone on valuation?
- EasyJetâs description of Castlelakeâs timing as âhighly opportunisticâ was boilerplate rhetoric (all bids are opportunistic to a degree) but in this case it is clearly possible that all European airlinesâ prospects could be brighter within a couple of months.
đ Source: The Guardian
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