EasyJet shares jump after report of potential takeover bid

A picture


Shares in easyJet jumped after reports that the Swiss-headquartered shipping company MSC was considering a takeover of Europe’s second-largest budget airline.The shares shot up 12% after a report from Corriere Della Sera, an Italian publication, which cited three unnamed sources familiar with the matter, their biggest bump in three years.A number of investors are considering a bid for easyJet, with options ranging from a majority stake to full control, according to the paper.Shares in easyJet pared back some of their earlier gains by midday after easyJet said it did not comment on speculation and MSC denied direct involvement in the talks, though were still trading up by about 4.5%.

It would not be the first time the budget carrier has attracted takeover interest.In 2021, the company rejected an approach from its rival Wizz Air.Dan Coatsworth, the head of markets at the broker AJ Bell, said the reports could spark interest from other potential bidders.“Shareholders might be getting frustrated that the market isn’t placing a higher value on easyJet, so they could be receptive to a bid if the price is right,” he said.“Stelios Haji-Ioannou could be the blocker, however, as he would no doubt want top dollar.

”Haji-Ioannou is the billionaire founder of easyJet, and remains its biggest single shareholder, with a stake of about 15% in the business.The FTSE 100 company, which is headquartered in Luton and employs more than 16,000 people around the world, is one of Europe’s three biggest budget airline, behind Ryanair, with Wizz Air in third place.Its shares are trading at less than half their level before the pandemic, as the company has grappled with volatile fuel costs, fragile consumer confidence and supply chain problems across the sector.Sign up to Business TodayGet set for the working day – we'll point you to all the business news and analysis you need every morningafter newsletter promotionHowever, easyJet told investors in May it was on track to achieve more than £1bn in pre-tax profit over the medium term.Last year it made £602m in pre-tax profit on £9.

3bn in revenue.A takeover of the FTSE 100 company would mark another significant loss for London’s struggling stock market, which has suffered a series of high-profile exits in recent years, including the construction equipment rental company Ashtead, the gambling group Flutter Entertainment and the building materials provider CRH.MSC, which is headquartered in Geneva, teamed up with Lufthansa in 2022 to launch a bid for ITA Airways, though this ultimately failed.The group also operates passenger divisions such as MSC Cruises and Grandi Navi Veloci.Alex Irving, an analyst at the broker Bernstein, said: “While the industrial logic in a combination between MSC and Europe’s second-largest point to point airline is not obvious to us, could there be a break-up play?”
politicsSee all
A picture

Vote for a party’s policies and actions, not its name or history | Letters

Polly Hudson (Some people have a choice about whether or not to vote Labour. I wish I did too, 5 October) seems to be confusing her father’s devotion to his political and ethical principles with devotion to a party. He sounds like a dedicated and hard-working MP who sacrificed a lot for his principles and to serve his country and community.But it’s only in dictatorships that devotion to “the party” starts to supersede commitment to moral and ethical principles. As citizens of a democratic country, it is imperative that we vote according to our principles and our ideas of what we want this country to be

A picture

Former lord speaker faces suspension for ‘improper influence’ over speeding offence

Former lord speaker Frances D’Souza is facing suspension from the Lords after writing to the Metropolitan police commissioner to try to “influence a police investigation into alleged speeding offences”.Lady D’Souza wrote to Mark Rowley saying she feared she would have to give up attending parliament if she were banned from driving for exceeding the limit in a 20mph zone.The Met police said it had considered launching a criminal investigation into the apparent attempt to influence the commissioner but decided against it. It then passed the letter to the House of Lords conduct committee to investigate whether it breached the code of conduct.D’Souza did not dispute the case but appealed against the sanction – a recommended eight-week ban from the Lords for seeking “to influence a live police investigation”

A picture

Academic axed from Labour conference panel for criticising energy policy

A prominent sustainability professor had events cancelled at Labour and Conservative conferences after hosts of a panel he was on said they did not want his views on oil and gas aired in front of MPs.Prof Matthew Agarwala spoke on the fringe at Lib Dem conference for the panel organised by Total Politics but was then pulled from similar panels at subsequent Labour and Conservative conferences.Agarwala has said he was told directly by both Total Politics and the panel’s sponsor Offshore Energies UK (OEUK) that they did not want a dissenting view on the panel about the importance of North Sea oil and gas to the UK economy.“I used to think cancellation was for culture wars and comedians, not economists. But point out that North Sea oil doesn’t cut UK energy bills, and suddenly you’re censored,” he said

A picture

Rachel Reeves to confirm changes to ‘outdated’ planning system

Ministers are making it easier to build windfarms, reservoirs and large housing developments as part of a series of changes to the government’s planning and infrastructure bill designed to bolster the confidence of developers.The changes, which were first revealed by the Guardian, will be confirmed on Tuesday by the chancellor, Rachel Reeves, as part of a pre-budget push to underline the government’s commitment to economic growth.They include reducing the role of Natural England in helping decide on relatively minor applications and freeing up developers to build turbines near seismic sensors in southern Scotland.Officials say the amendments to the bill were required in part because the government damaged investor confidence by watering down the bill earlier in the summer.Reeves is hoping the bill will pass the Lords in time to be factored into the growth forecasts by the Office for Budget Responsibility, which could give her about £3bn extra breathing room against her own debt rules

A picture

Labour MPs call on Rachel Reeves to scrap council tax

More than a dozen Labour MPs have written to Rachel Reeves calling on her to scrap council tax, as the chancellor faces mounting pressure to overhaul Great Britain’s property taxes in next month’s budget.Thirteen MPs, mainly from seats in northern England, wrote to Reeves last month asking her to abolish the tax and replace it with another system that better accounts for the steep rise in house prices in London and the south-east over the last 35 years.The chancellor is looking for ways to close what could be a £30bn shortfall in the public finances, with experts warning that doing so could require a shake-up of the entire tax system.The Labour MPs wrote: “If we are to succeed in our mission to transform Britain and fight back against Reform, we must be bold and embrace new ideas that put more money back into the pockets of working people.“One place we can start is by looking at ways we can abolish the outdated, deeply regressive, and increasingly indefensible council tax system

A picture

Muddle over semantics or pressure from China? Collapsed spying case remains baffling

There is a baffling contradiction at the heart of the efforts of Dan Jarvis, the security minister, to explain why the prosecution of two Britons accused of spying for China collapsed last month. The problem, he insisted in front of MPs on Monday, was that “it was not the policy of a Conservative government to classify China as a threat to national security”.Except there is plenty of evidence to suggest that China was recognised as a threat by the previous governments in documents and public statements by ministers and officials. All this makes the failure of the government witness – Matthew Collins, the deputy national security adviser – to set this out in three separate witness statements given to the prosecution even more surprising.The context here is the ongoing fallout from the collapse of the prosecution of Christopher Cash, a parliamentary researcher, who was working for the Conservative MP Alicia Kearns at the time of his arrest, and his friend Christopher Berry, a researcher based in China