Ryanair or Air Atlanta to purchase easyJet?

[Buster the Bear]

http://www.businessworld.ie/livenews.htm?a=1027332%3Bs=rollingnews.htm

EasyJet shares up on Ryanair bid rumour

Friday, October 22 12:00:16

(BizWorld)

Rumours that Irish low-cost airline Ryanair might bid to take over rival easyJet took off this morning as shares in easyJet jumped.

The rumours appear to have started due to a putative fund raising at Ryanair, a possible signal that it is seeking to make an acquisition.
However, commenting on the rumours, a Ryanair spokeswoman said, "Hell will freeze over first."


Shares in the British low-cost carrier rose 8.8pc on the news, climbing 11.5 pence to 142.5. The volume of shares traded rose to 28m, compared to daily average of 7m.

Shares in Ryanair remained steady, edging 3 cent higher to 377.

Whether the regulator would allow any deal between the low-cost rivals is uncertain. A merger of the two companies would create a company worth uk£3bn, more than one-third bigger than British Airways.

Last month Ryaniar chief executive Michael O'Leary announced a fares "bloodbath", as he aimed to knock up to 20pc of the airline's fares during the winter months.

http://www.reuters.co.uk/newsPackageArticle.jhtml?type=stocksAndSharesNews&storyID=607594&section=finance

LONDON (Reuters) - Shares in budget airline easyJet have jumped 15 percent as speculation that an Icelandic airline could be considering a takeover or building a stake mounts.

Several dealers said on Friday talk that easyJet EZJ.L 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 IAIR.IC could be casting an eye on it.

EasyJet declined to comment and Iceland Express said it was not buying shares. The other two airlines could not immediately be reached.

By 11.37 a.m. easyJet shares were up 20 pence at 151p, valuing the company at over 580 million pounds. More than 18 million shares had traded, more than three 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.

http://money.iwon.com/jsp/nw/nwdt_rt_top.jsp?cat=TOPBIZ&src=704&feed=dji&section=news&news_id=dji-00057920041022&date=20041022&alias=/alias/money/cm/nw

LONDON -(Dow Jones)- U.K.-based low fares airline easyJet PLC (EZJ.LN) Friday denied speculation that it may be the subject of a takeover approach.

Responding to two-day market speculation that easyJet is being targeted by another European carrier, a spokesman told CNBC Europe not only was it not in any talks, but it also knew nothing of an approach by any Icelandic peer.

Citing market sources, the Guardian newspaper reported Friday that Iceland's Avion Group - which owns Air Atlanta Icelandic (AAI.YY) - or Icelandair ( IAIR.IC) may have been building a stake in easyJet.

Avion Group though denied it has been buying shares. "Neither Air Atlanta Icelandic nor any other company within the Avion Group has acquired a holding in easyJet," said a spokesman for Avion.

A spokesperson for Icelandair couldn't immediately be reached for comment. On Thursday, Irish budget carrier Ryanair Holdings PLC (RYAAY) flatly denied that it's planning to make a bid for easyJet.

EasyJet's shares gained 3% Thursday and at 1100 GMT Friday were up 12.2% at 147 pence.




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[MerchantVenturer]

This is also being discussed on the European LF Bloodbath topic on this page.

It was discussed briefly a few minutes ago on the BBC 2 lunchtime business programme, 'Working Lunch'.

Financial analyst Alpesh Patel told the programme that he regards easyJet more of a rumour subject than a bid target. He said that such rumours obviously do easy's share price no harm which would not displease the likes of Stelios with his still very substantial holding (this assumes that Stelios definitely is not planning to try to take the company private).

[CaptJ]

As you may have seen by now. Icelandair has bought a 9% share.

Slightly ironic as it was Icelandair's iron grip on Keflavik that contributed to pushing GO out of Iceland.

Ever been there? Do go, it's a fantastic place, if a little expensive.

[Buster the Bear]

LONDON (AFP) - Icelandair said it had bought an 8.4 percent stake in British low-cost carrier easyJet, describing the holding as a "long-term trade investment."

In a statement issued to the London Stock Exchange, Icelandair said it might buy further shares in the short term.


"We have a positive opinion of the easyJet business model and we think that the company has a bright future," Icelandair chairman Hannes Smarason said.


"Part of the company's investment policy includes making investments in sectors where the group has specialised knowledge.


"The Icelandair group is financially strong and the company is seeking ways to improve the return on its cash. We have therefore kept our eyes open for the opportunities in airline-related securities," he added.


EasyJet shares had earlier closed up 16 percent at 152 pence on rumours of takeover bid for the no-frills carrier.


The Guardian newspaper reported here Friday that three Icelandic airline companies -- Air Atlanta Icelandic, which owns British budget airline Excel Airways, plus Iceland Express and Icelandair -- were buying shares in easyJet.

http://whipsnade.co.uk/picturelibrary/jpeg150/br/brown_bear_120_wide.jpg

[Buster the Bear]

Close of trading today (Tuesday), Icelandair now owns 10.1% of easyJet! Bought another 1.7%, dealers are bracing for more take over speculation/action!

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