US investor Castlelake taps shipper MSC for potential easyJet bid, report says
Castlelake's Potential Takeover Bid for easyJet
Background and Market Reaction
ROME, June 4 (Reuters) - U.S. investment firm Castlelake is looking at MSC, the world's largest shipping group, as a partner in a consortium for a potential takeover bid for British budget airline easyJet, Italian daily Corriere della Sera reported on Thursday.
EasyJet shares were up 2.3% by 0803 GMT. They have gained about 15% since Castlelake said last week it was in the early stages of considering a takeover of easyJet that would be over 403.23 pence per share, though no formal approach has been made.
Under British takeover rules, the firm has until June 26 to make a firm bid for easyJet or walk away.
Analyst Perspectives and Takeover Appeal
While easyJet had called Castlelake's timing "highly opportunistic", analysts say the carrier's low valuation, slots at key airports and stable fleet make it a prime takeover target.
Consortium Formation and EU Ownership Rules
Should Castlelake decide to present a formal bid for easyJet by the deadline, it hopes to partner up with MSC to ensure its bid complies with EU ownership rules, Corriere reported, citing two sources with knowledge of the discussions.
It added that two further sources saw MSC's involvement as possible and that the group had already been contacted.
Responses from Involved Parties
MSC and easyJet declined to comment on the report. Castlelake did not immediately respond to Reuters' request for comment.
About MSC and Strategic Implications
MSC's Business Operations
Swiss-based MSC, run by Italian billionaire Gianluigi Aponte, is a global group spanning container shipping, logistics, terminal and inland transport operations, and passenger cruises.
It also owns a 49% stake in Italian high-speed rail operator Italo.
Potential Synergies with easyJet
A combination with easyJet would allow MSC to control the entire leisure travel chain, from flights to cruise ships, in a model similar to German travel group TUI, the report added.
easyJet's Holiday Package Business
EasyJet also owns a holiday package business, launched in 2019, which accounts for a growing share of profit and bolsters overall results.
(Reporting by Giulia Segreti in Rome, and Tuhina, Ankita Bora and Pushkala Aripaka in Bengaluru; Editing by Gianluca Semeraro, Louise Heavens and Vijay Kishore)
