EasyJet shares jump 10% after airline backs $7.3 billion Castlelake takeover

July 6 (Reuters) - Shares successful easyJet roseate 10% successful aboriginal trading connected Monday aft the British fund hose agreed successful rule to a £5.5 ‌billion ($7.34 billion) takeover connection from U.S. concern steadfast Castlelake implicit the ‌weekend.

EasyJet said connected Sunday it was prepared to judge Castlelake's revised bid of £6.90 apiece, perchance ending ​lengthy negotiations and reshaping Europe's aviation industry.

The latest bid was astatine a astir 24% premium to easyJet's stock terms arsenic of Friday's close.

The shares were up 10.9% astatine £6.18 arsenic of 0720 GMT connected Monday.

The imaginable take-private deal, which besides includes a ‌partial equity alternative, comes astatine ⁠a challenging clip for airlines, which are grappling with sharply higher substance prices and borderline unit linked to the Iran ⁠conflict.

JPMorgan analysts, however, raised concerns astir however aviation-focused lender Castlelake and the easyJet committee would conscionable European Union ownership requirements and hold connected a power structure, with laminitis ​and controlling ​shareholder Stelios Haji-Ioannou's views besides unclear.

EasyJet said ​on Sunday that Castlelake had ‌agreed to a "best endeavours" committedness to get regulatory clearances and approvals.

Castlelake has antecedently said it would ain 49% of the bidding conveyance with the remainder held by 2 EU nationals, erstwhile Malaysia Airlines CEO and erstwhile easyJet main operating serviceman Peter Bellew, and elder manufacture enforcement Mark Breen.

EU regulations necessitate airlines operating successful ‌the bloc to beryllium bulk owned and ​controlled by EU nationals.

JPMorgan analysts besides noted that ​while the agreed connection terms was ​close to investors' feedback, support from shareholders was not guaranteed ‌with prospects of a antagonistic bid ​also open, oregon different ​carriers looking to bargain parts of easyJet.

EasyJet rejected Castlelake's 4 erstwhile proposals calling them opportunistic attempts to bargain the hose "on the cheap" and raised ​concerns implicit governance structure.

Castlelake ‌must present formalise its connection for easyJet by August 3 oregon ​walk distant nether British takeover rules.

($1 = £0.7496)

(Reporting by Prerna Bedi successful Bengaluru; ​Editing by Sherry Jacob-Phillips and Susan Fenton)