9 August 2005
SHARES in the budget airline - led by Stelios Haji-Ioannou - soared as much 7% yesterday on heightened speculation that Icelandair is building on its 11.5% stake.
Almost 27m shares - equivalent to 2.5% of easyJet's issued shares - have changed hands in the last two days alone. The Mail understands Icelandair's-parent company, FL Group, is building up its war chest before mounting a bid, with 280p a share mooted as the potential takeout price.
FL is led by ambitious Hannes Smarason, whose hand has been strengthened after a bitter boardroom row last month effectively handed him control of the company.
FL's six other directors resigned, allowing him to bring expansionist allies, including Baugur's Jon Asgeir Johannesson, on board. FL is valued at just £325m against easyJet's £1bn, but could easily call on various well-to-do backers to muster a bid.
Smarason is understood to be keen to take advantage of current unrest in the easyJet boardroom. Non-executives Colin Day and Tony Illsley have both walked in the last three weeks.
Day quit after an offer to replace outgoing chief executive Ray Webster was rescinded. Illsely last night sold his entire stake in the airline.
Cheers,
White Cap
