The board of easyJet has branded a possible takeover bid from Castlelake "highly opportunistic" while its share price has dipped due to the war in Iran.
The US-based investment fund confirmed on Friday evening that it was in the "early stages of considering a possible offer" for easyJet.
It comes as the airline has seen its share price fall as a result of the conflict in Iran causing travel uncertainty and increasing jet fuel costs.
The Telegraph reported on Friday evening easyJet's share price had dropped 22.9% since the start of the year, and 53% over the last five years, valuing the company at £3billion.
However when trading opened this morning easyJet shares had jumped almost 12% to p444.4 per share at the time of writing.
This morning, easyJet has responded, with the board critical of the timing of the interest.
A statement read: "The board of easyJet has not had any discussions with, nor received any approach or proposal from Castlelake.
"The board is clear in its duty of aiming to maximise shareholder value and will consider any proposal, should one be made. In any assessment, the board will be especially mindful of its valuation and deliverability.
"Valuation: The board notes the highly opportunistic timing when easyJet’s share price is temporarily depressed due to the current situation in the Middle East and its impact on customer confidence and jet fuel prices.
"Deliverability: The board notes the considerable regulatory, financial and other execution challenges associated with a potential takeover of easyJet.
"easyJet is in a position of strength, underpinned by an investment grade balance sheet with a net cash position, alongside strong customer satisfaction and high employee engagement.
"The board remains highly confident in easyJet’s strategy and its ability to deliver attractive long-term value for shareholders. The company remains focused on executing its medium-term target of delivering greater than £1billion profit before tax.
"There can be no certainty that an offer will be made, nor as to the terms on which any offer might be made.
"Shareholders are advised to take no action at this time."
FSTE100
The UK's flagship share index, the FTSE 100, was down 50 points at 10,381 shortly after opening this morning.
Brent crude oil futures were up 3.08%, sitting at $93.93 a barrel this morning.
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