European Stock Markets Little Changed at Midday – Easyjet Jumps on Takeover, Defense Stocks in Focus

The biggest price jump was recorded by the British low-cost airline Easyjet. The company agreed "in principle" to a fifth takeover offer from US investor Castlelake of 690 pence per share, as both companies announced. Shares responded to the takeover offer accepted by Easyjet with a jump to their highest level in nearly four and a half years. Most recently, they were up 10.4 percent at 616 pence. The low-cost carrier had previously rejected all other bids – most recently 650 pence – as not providing sufficient value.

Easyjet: Soaring After Fifth Offer

British TV broadcaster ITV was also in focus in London. Its shares rose 1.2 percent after the company agreed to sell its media and entertainment business to pay-TV provider Sky for the equivalent of more than 1.8 billion euros. According to a Sky statement, the combined company is to become a leading British streaming provider as an alternative to global streaming conglomerates.

Defense Stocks on the Rise

In the defense sector, both an upcoming NATO summit and a takeover move in France generated activity. In Frankfurt, Rheinmetall gained 1.6 percent. The French aerospace and defense group Thales intends to acquire specialist in underwater drones Exail Technologies, thereby strengthening its position in underwater warfare and navigation.

Thales Plans to Acquire Exail

Thales shares rose by around 2 percent on the news to their highest level since the end of April. Exail shares gained just over 4 percent during the day to 127.60 euros, but remained below the planned offer price of 134 euros per share.

Overall, European markets thus presented a mixed picture: while blue chips and leading indices were little changed, investor interest clearly focused on the themes of takeovers and defense. The upcoming NATO summit remains an additional driver for defense stocks in the region.