Icelandair buys stake in Easyjet
Easyjet has been a big rise in passenger numbers
The owner of Iceland’s national airline has bought an 8.4% stake in the UK low-cost carrier Easyjet.
Shares in the Luton-based company had jumped 16% on Friday on speculation one of three Icelandic airlines may be considering a takeover attempt.
The Icelandair Group said it had bought shares as a “long-term trade investment to which it may add in the short-term”.
Easyjet recently reported a 25% rise in passengers during September compared to the same month in 2003.
“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.
Rival’s denial
Rival Ryanair had earlier strongly denied that it was considering a takeover attempt of Easyjet.
“Hell will freeze over first,” said a Ryanair spokeswoman.
Icelandair is the largest of 13 subsidiaries of the Icelandair Group.
Among the other Icelandair Group holdings are a cargo marketing company, a hotel group, car rental and travel agencies.
Any takeover attempt of Easyjet would need the approval of founder Stelios Haji-Ioannou, whose family still owns 41% of the company.
Shares in EasyJet, Europe’s largest low-cost carrier after Ryanair, hit an all-time low late last month on concerns about rising fuel costs and competition.
By: by738 - 23rd October 2004 at 11:33
Is it not purely a financial investment rather than the star of some big takeover plan ?
By: by738 - 23rd October 2004 at 11:33
Is it not purely a financial investment rather than the star of some big takeover plan ?
By: andrewm - 23rd October 2004 at 10:43
I think we are definetly talking about an amount way in excess of the value of Icelandair so i think they just want to come along for the ride!
By: andrewm - 23rd October 2004 at 10:43
I think we are definetly talking about an amount way in excess of the value of Icelandair so i think they just want to come along for the ride!
By: skycruiser - 23rd October 2004 at 10:37
Cathay Pacific are also in the process of buying 9.9% stake in China Airlines. Seems there all at it right now.
By: skycruiser - 23rd October 2004 at 10:37
Cathay Pacific are also in the process of buying 9.9% stake in China Airlines. Seems there all at it right now.
By: Airline owner - 23rd October 2004 at 08:28
8% is still worth something though
By: Airline owner - 23rd October 2004 at 08:28
8% is still worth something though
By: Dantheman77 - 23rd October 2004 at 02:12
But they need to hit 29.9% befor the stockmarket takeover board tells them to make a bid…..probably cost them a few £££££
By: Dantheman77 - 23rd October 2004 at 02:12
But they need to hit 29.9% befor the stockmarket takeover board tells them to make a bid…..probably cost them a few £££££
By: Dutchy - 22nd October 2004 at 23:42
8% is the beginning of something 😀
By: Dutchy - 22nd October 2004 at 23:42
8% is the beginning of something 😀
By: andrewm - 22nd October 2004 at 23:10
8% is nothing, stelios still will control it thankfully
By: andrewm - 22nd October 2004 at 23:10
8% is nothing, stelios still will control it thankfully
Sign In
October 22, 2004 at 10:08 pm