EasyJet is an obvious takeover target, but US approach may not be a flyer | Nils Pratley

Castlelake's move raises questions over valuation and ownership rules as well as whether Stelios Haji-Ioannou could throw a spanner in the works

• EasyJet says US takeover bid would be highly opportunistic'

A share price gain of only 10% on a possible takeover approach is a meek reaction. If the stock market truly believed that Castlelake, a US investment fund, stood a decent chance of buying easyJet, you would expect the target's stock to fly significantly higher. Scepticism is the right stance until at least three factors become clearer.

First, would the two sides even be vaguely in the same landing zone on valuation? EasyJet's description of Castlelake's timing as highly opportunistic" was boilerplate rhetoric (all bids are opportunistic to a degree) but in this case it is clearly possible that all European airlines' prospects could be brighter within a couple of months.