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Icelandair på jakt etter easyJet?
LONDON, Oct 22 (Reuters) - Shares in British budget airline easyJet Plc jumped more than 15 percent on Friday on speculation that an Icelandic airline could be building a stake or mulling a takeover, dealers said.
Several dealers said talk that easyJet could be a takeover target had returned this week, and the latest rally was spurred by a report that Air Atlanta Icelandic, Iceland Express or Icelandair could be casting an eye over it.
EasyJet declined to comment, Iceland Express said it was not buying shares, and the other two airlines could not immediately be reached.
By 1115 GMT easyJet shares were up 15.7 percent at 151-1/2 pence, valuing the company at over 580 million pounds ($1.1 billion). Over 26 million shares had traded, more than four times the daily average. "The bid rumours are certainly doing the rounds. You'd be silly not to listen to them, but also silly to put too much into them," one dealer said.
Icelandair chairman Hannes Smarason told Reuters last week it planned to take advantage of its strong cash position and expand via mergers and acquisitions.
"Our intention is to become very aggressive," he said.
EasyJet shares hit an all-time low late last month on concerns about rising fuel costs and low fares as competition bites.
Irish low-cost rival Ryanair <RYA.I> earlier denied speculation it was considering a bid for easyJet. "Hell will freeze over first," a Ryanair spokeswoman said.
EasyJet founder Stelios Haji-Ioannou has also repeatedly denied he is considering taking the airline private.
Icelandair shares were 1.01 percent firmer at 9.65 Icelandic crowns.
REUTERS
LONDON, Oct 22 (Reuters) - Shares in British budget airline easyJet Plc jumped more than 15 percent on Friday on speculation that an Icelandic airline could be building a stake or mulling a takeover, dealers said.
Several dealers said talk that easyJet could be a takeover target had returned this week, and the latest rally was spurred by a report that Air Atlanta Icelandic, Iceland Express or Icelandair could be casting an eye over it.
EasyJet declined to comment, Iceland Express said it was not buying shares, and the other two airlines could not immediately be reached.
By 1115 GMT easyJet shares were up 15.7 percent at 151-1/2 pence, valuing the company at over 580 million pounds ($1.1 billion). Over 26 million shares had traded, more than four times the daily average. "The bid rumours are certainly doing the rounds. You'd be silly not to listen to them, but also silly to put too much into them," one dealer said.
Icelandair chairman Hannes Smarason told Reuters last week it planned to take advantage of its strong cash position and expand via mergers and acquisitions.
"Our intention is to become very aggressive," he said.
EasyJet shares hit an all-time low late last month on concerns about rising fuel costs and low fares as competition bites.
Irish low-cost rival Ryanair <RYA.I> earlier denied speculation it was considering a bid for easyJet. "Hell will freeze over first," a Ryanair spokeswoman said.
EasyJet founder Stelios Haji-Ioannou has also repeatedly denied he is considering taking the airline private.
Icelandair shares were 1.01 percent firmer at 9.65 Icelandic crowns.
REUTERS
