Like The Herald Business Journal on Facebook!
The Herald of Everett, Washington
Heraldnet.com

The top local business stories in your email

Contact Us:

Josh O'Connor
Publisher
Phone: 425-339-3007
joconnor@heraldnet.com

Jody Knoblich
General Sales Manager
Phone: 425-339-3445
Fax: 425-339-3049
jknoblich@heraldnet.com

Jim Davis
Editor
Phone: 425-339-3097
jdavis@heraldnet.com

Site address:
1800 41st Street, S-300,
Everett, WA 98203

Mailing address:
P.O. Box 930
Everett, WA 98206

HBJ RSS feeds

EasyJet founder opposes $13 billion Airbus deal

SHARE: facebook Twitter icon Linkedin icon Google+ icon Email icon |  PRINTER-FRIENDLY  |  COMMENTS
Bloomberg News
Published:
LONDON — EasyJet founder and No. 1 shareholder Stelios Haji-Ioannou said he will vote against a management plan to buy 135 Airbus SAS jets valued at $13.2 billion, citing a lack of transparency to the transaction.
"It is my firm opinion that this is a good deal for Airbus and a bad deal for EasyJet shareholders," Stelios, who is known by his first name, said in a letter to fellow investors in Europe's second-largest discount carrier.
The founder, who said he expects the transaction to be approved in a vote on July 11, owns just less than 37 percent of the company. Standard Life Investments and Prudential Plc's M&G Investments declined to comment on their voting intentions. They own about 8 percent and 5.3 percent of the shares, respectively, according to data compiled by Bloomberg.
EasyJet agreed on June 18 to buy 135 A320 single-aisle planes, with an option for 100 more as it goes head-to-head with network carriers such as British Airways by targeting a bigger share of Europe's business-travel market. Some 85 of the 135 aircraft will replace old jets, with the remainder helping to boost seat capacity by 3 percent to 5 percent annually, the carrier said last month.
"I am not against replacing aircraft that have reached the end of their economic life," Stelios said. "However, I am against buying aircraft that are three times more expensive than the ones I bought with my own money in the early 2000s."
EasyJet declined to comment when contacted by Bloomberg News on Monday.
Stelios, who trimmed his holding earlier this year and threatened to sell more shares if the airline added new planes, said he was "disappointed" that Chairman John Barton, who joined this year, approved a large transaction so quickly. He also expressed concern that shareholders are being asked to approve a deal without clear price information.
Carriers typically buy airliners at a discount, and the price per plane isn't revealed, at the manufacturer's request.
Standard Life and M&G have supported the board during previous disputes. Both investors voted against Stelios and in favor of management in August last year to keep then-Chairman Mike Rake in his position.
Story tags » Airbus

MORE HBJ HEADLINES

CALENDAR

Share your comments: Log in using your HeraldNet account or your Facebook, Twitter or Disqus profile. Comments that violate the rules are subject to removal. Please see our terms of use. Please note that you must verify your email address for your comments to appear.

You are logged in using your HeraldNet ID. Click here to update your profile. | Log out.

Our new comment system is not supported in IE 7. Please upgrade your browser here.

comments powered by Disqus

Market roundup