London open: FTSE ticks higher, easyJet surges on Castlelake deal

(Sharecast News) - London stocks edged up in early trade on Monday, with easyJet surging ahead as it agreed to a sweetened takeover approach from private equity firm Castlelake.

At 0845 BST, the FTSE 100 was 0.3% firmer at 10,713.61.

Susannah Streeter, chief investment strategist at Wealth Club, said there was "little on the economic calendar to fully jolt markets awake".

"The big driver of sentiment on markets this week is likely to be the release of the Federal Reserve's Open Market Committee minutes on Wednesday, which could offer fresh insight into attitudes towards interest rates," she said. "Last week's weaker-than-expected US jobs data has already dampened expectations for multiple rate hikes. Oil prices have settled back towards their pre-Iran conflict levels, raising hopes that the knock-on effects of the energy shock may prove less severe than initially feared."

On the macroeconomic front, the S&P Global UK construction PMI for June will be released at 0930 BST.

In equity markets, easyJet shot higher after saying it was ready to accept a sweetened �5.5bn takeover offer from Castlelake after the private equity group tabled a fifth offer at 690p a share. This followed four prior rejected approaches at 560p, 600p, 625p and 650p. BA and Iberia owner IAG also flew higher.

Streeter said: "The latest proposal of 690p a share represents a substantial premium to where the shares were trading before takeover interest emerged and suggests Castlelake has finally reached a price the board believes better reflects the airline's longer-term value.

"The deal remains subject to a formal offer and regulatory approvals, but if completed it would see one of Britain's best-known brands leave the London stock market.

"EasyJet has endured a difficult few months, with the conflict in Iran unsettling consumer confidence, pushing up fuel costs and weighing on European travel demand. Those pressures depressed the airline's share price and created an opportunity that Castlelake clearly believes the market has mispriced. The private equity firm, which has deep expertise in aircraft leasing and aviation finance, appears to see long-term value in easyJet's modern fleet, strong balance sheet and growing holidays business."

Elsewhere, ITV nudged higher after agreeing to sell its media and entertainment business to Comcast-owned Sky for up to �1.6bn.

Close Brothers was knocked lower by a downgrade to 'sector perform' from 'outperform' at RBC Capital Markets, which slashed its price target to 470p from 625p.

High-performance computing firm Raspberry Pi was also in the red as it said has tapped Tim Powell to take over as chief financial officer, succeeding Richard Boult with effect from 16 October. The company said Powell brings over 20 years' leadership experience across public companies.

Ocado fell as it announced that founder and chief executive Tim Steiner will step down in 2028. Following the appointment of a successor, Steiner will transition into a founder role.

Market Movers

FTSE 100 (UKX) 10,713.61 0.32%

FTSE 250 (MCX) 23,604.16 0.28%

techMARK (TASX) 6,058.66 0.45%

FTSE 100 - Risers

International Consolidated Airlines Group SA (CDI) (IAG) 487.20p 2.54%

Relx plc (REL) 2,384.00p 2.36%

BAE Systems (BA.) 2,024.00p 2.12%

Babcock International Group (BAB) 1,062.50p 2.11%

Experian (EXPN) 2,695.00p 2.08%

Barratt Redrow (BTRW) 285.70p 1.96%

Pearson (PSON) 1,244.50p 1.76%

Abrdn (ABDN) 263.20p 1.70%

St James's Place (STJ) 1,326.00p 1.69%

Flutter Entertainment (DI) (FLTR) 7,958.00p 1.63%

FTSE 100 - Fallers

Fresnillo (FRES) 2,867.00p -1.44%

Halma (HLMA) 3,966.00p -1.00%

Airtel Africa (AAF) 340.20p -0.93%

Diploma (DPLM) 7,130.00p -0.90%

Vodafone Group (VOD) 98.50p -0.73%

Melrose Industries (MRO) 500.00p -0.72%

Spirax Group (SPX) 6,715.00p -0.66%

IMI (IMI) 2,918.00p -0.61%

Games Workshop Group (GAW) 21,000.00p -0.47%

Anglo American (AAL) 3,770.00p -0.40%

FTSE 250 - Risers

easyJet (EZJ) 616.20p 11.56%

IntegraFin Holding (IHP) 389.50p 3.87%

WPP (WPP) 258.60p 3.55%

Bridgepoint Group (Reg S) (BPT) 301.00p 3.42%

AEP Plantations (AEP) 160.00p 3.23%

Oxford Nanopore Technologies (ONT) 123.40p 2.57%

THG (THG) 31.90p 2.51%

HGCapital Trust (HGT) 397.00p 2.45%

W.A.G Payment Solutions (EWG) 111.00p 2.21%

Bloomsbury Publishing (BMY) 655.00p 2.18%

FTSE 250 - Fallers

Close Brothers Group (CBG) 414.00p -5.05%

Raspberry PI Holdings (RPI) 826.75p -3.54%

Ceres Power Holdings (CWR) 501.00p -3.51%

Rank Group (RNK) 90.00p -3.02%

Hansa Investment Company Limited (DI) (HAN) 326.00p -2.98%

Harworth Group (HWG) 123.20p -2.84%

Workspace Group (WKP) 327.00p -2.04%

Ocado Group (OCDO) 180.80p -2.01%

Aston Martin Lagonda Global Holdings (AML) 38.04p -1.86%

Renishaw (RSW) 4,946.00p -1.82%