easyJet

Company Update:
This morning, easyJet's board announced that it had agreed on a 715p price for a takeover by Apollo and therefore no longer recommends the deal with CastleLake (690p).

We will see how CastleLake will react but a battle around the name cannot be ruled out. Obviously, shareholders are better off waiting for another round of raised offers. Good news including for peers valuations.

Then the buyer will have to extract the juice from easyJet, which may mean more commercial aggressiveness. 

Expert Opinion:
This is interesting and (at least from where we stand) quite unexpected.  This is a 22% premium on yesterday's closing price and we expect easyJet will soon be close to that level, especially if investors believe a battle can occur. 

However, we remain structurally cautious on the airline's business model, and there is a risk that easyJet will become more aggressive, hence adding more pressure on other European legacy carriers.  


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