easyJet shares rise after Castlelake hints at possible bid

Shares in easyJet surged on Monday following news of a potential takeover approach from U.S. investment firm Castlelake, an offer the British budget airline swiftly dismissed as "highly opportunistic." The Luton-based carrier confirmed it has not received a formal proposal and is not engaged in any discussions with the suitor.

Castlelake revealed late Friday that it was in the early stages of considering an offer for easyJet but had not yet approached the airline's board. The Minneapolis-based firm, which manages approximately $36 billion in assets, confirmed it holds a stake of about 2.14 percent in easyJet. Under U.K. takeover rules, Castlelake has until 5 p.m. on June 26 to announce a firm intention to make an offer or walk away. The firm stated any offer would be for no less than 403.23 pence per share.

In a statement, easyJet's board criticized the timing of the interest, noting its share price is "temporarily depressed due to the current situation in the Middle East and its impact on customer confidence and jet fuel prices." The airline's stock had fallen 22 percent year-to-date prior to Monday's rally, which saw shares jump as much as 13 percent.