Shares in British low-cost carrier easyJet jumped as much as 11.4% on Monday after the airline agreed in principle to a 5.5 billion-pound ($7.34-billion) takeover bid from Castlelake over the weekend, but investors worried the deal might struggle to secure approval.
EasyJet said on Sunday it was prepared to accept U.S. investment firm Castlelake's sweetened bid of 6.90 pounds a piece, potentially ending lengthy negotiations and reshaping Europe's aviation industry.
The bid was a nearly 24% premium to easyJet's close on Friday, and around the 7 pounds price some investors were reportedly holding out for after four previous Castlelake proposals were rejected.
EasyJet, which rose to as much as 6.22 pounds on Monday, was up 9.7% at 6.12 pounds as of 07:48 a.m. GMT.
A shareholder who declined to be named noted that current levels indicated the market was pricing a more than 30% probability of the deal falling through.
