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FinanceFTSE 100 Flat; Easyjet to Update Markets After 11% Share Slump on EU Ownership Review
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The FTSE 100 is expected to open flat as Easyjet prepares to update markets following an 11% share slump triggered by reports that the EU is reviewing foreign ownership rules for airlines, throwing a potential takeover into doubt. Easyjet had agreed terms with Apollo on a £5.7bn deal. Meanwhile, US markets fell amid fresh US-Iran tensions, and Brent crude oil prices broke $95 a barrel for the first time since a ceasefire last month. In corporate news, FTSE 100 real estate firm Segro said it was 'minded to accept' a £14bn takeover from US firm Prologis, adding to a string of recent private takeovers of UK-listed companies, including Mitie for £3.1bn.
Source report
Easyjet shares slumped on reports of a review into airline ownership
Welcome back to the City AM FTSE 100 liveblog.
Easyjet is set to update the markets today, following a sharp decline in its stock after its takeover was thrown into doubt.
Easyjet Shares Plunge
Easyjet dropped nearly 11 per cent on Wednesday afternoon to 593p, following reports that the EU is preparing to review its rules on foreign ownership of airlines. The EU review will "protect strategic autonomy" to ensure control of regional carriers remains within the bloc, an official told Reuters.
This potential review casts doubt over a mooted takeover of the budget airline. Easyjet had previously stated it was "minded to accept" a takeover bid from private equity firm Castlelake, but earlier this month agreed terms with Apollo on a £5.7bn deal.
US Markets and Oil Prices
US markets dropped on Wednesday night amid fresh US-Iran tensions. Earlier that day, oil prices returned to levels not seen since the beginning of June, after both the US and Iran warned that hopes of a return to peace negotiations were premature.
The spot price of Brent crude broke $95 a barrel on Wednesday for the first time since the warring parties agreed a 60-day ceasefire last month. The latest jump followed more hawkish remarks from Marco Rubio, who warned that the Iranian regime was "not serious" about peace talks.
London Stock Exchange Developments
The latest flight from the London Stock Exchange was all but confirmed late on Wednesday, after FTSE 100 real estate firm Segro said it was "minded to accept" a £14bn takeover swoop from US property giant Prologis.
The UK's capital markets have suffered a string of private takeovers in recent weeks. Most recently, facilities management firm Mitie was swept off the London Stock Exchange for £3.1bn, marking the 11th takeover worth more than £1bn to be announced this year.
We'll be bringing you the latest market updates and analysis as the day develops.
This Morning's Top Stories
- Read more: Easyjet shares crash on fears of EU probe
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FTSE 100 Flat; Easyjet to Update Markets After Share Slump on EU Ownership Review