Shares in EasyJet slumped by over 11% in London today after Icelandic investor FL Group said it had sold its 16.9% holding in the low-cost airline, ending talk of a potential takeover bid.
FL Group said that it had made a profit of €140m from the disposal of the stake, which was believed to have been placed with a number of institutional investors by JP Morgan. The total estimated proceeds were around €325m, FL Group added in an official statement to the London Stock Exchange.
It had been thought that the acquisitive Icelandic firm might be about to bid after building up its stake in EasyJet which is based in Britain. It first bought shares in EasyJet in October 2004.
'FL Group first invested in EasyJet just under two years ago and the investment has proved to be a great success which has provided a foundation on which we have built FL Group,' its chief executive Hannes Smarason said. 'We have enjoyed being an investor in easyJet and believe that the company is well placed within its industry and has a bright future.'
Analysts said that shares in the airline had rallied over the last 12-18 months on speculation that FL would eventually bid for the company.
About 41% of EasyJet's equity is owned by the family of Stelios Haji-Ioannou, the airline's founder and former chairman, who is now a non-executive director.
