EasyJet Calls Castlelake Approach ‘Highly Opportunistic’ (4)

EasyJet Plc called the overture by investment firm Castlelake LP “highly opportunistic” given its depressed stock price and cautioned that a takeover of the UK carrier would be fraught with risk.

The budget airline’s stock jumped 13% after the company said its board remains confident in the strategy, given its cash position and profit outlook, according to a regulatory statement on Monday that followed Castlelake’s initial disclosure on Friday.

While there have been no discussions or proposals from Castlelake, the public display of interest comes at a vulnerable time for the company. EasyJet shares had dropped by more 20% this ...