Key facts
- European shares were flat on Monday, pausing after a strong previous week.
- easyJet shares jumped 11% following a sweetened takeover offer from U.S. investment firm Castlelake.
- The deal values the UK budget airline at up to £5.5 billion ($7.34 billion).
- The broader travel and leisure sector saw a 1% rise.
- Thales fell 1.4% after agreeing to acquire the Gorgé family's stake in Exail.
- Ferrari gained 2% after launching a new limited-edition 12-cylinder model.
European shares traded flat on Monday, pausing after a robust performance in the previous week. Investors were closely watching deal-making activity, particularly a sweetened takeover offer for the British budget airline easyJet. The pan-European STOXX 600 index stood at 652.84 points as of 0710 GMT, following its strongest weekly gain since mid-May.
EasyJet's shares surged 11% after the company agreed in principle to a takeover bid from U.S. investment firm Castlelake, which values the carrier at up to £5.5 billion ($7.34 billion). The broader travel and leisure sector was a notable gainer, rising by 1%.
Recent gains in European equities have been partly attributed to easing Middle East tensions and a fall in oil prices towards pre-conflict levels. However, market participants remain watchful of developments in the region, especially given the lack of a breakthrough in U.S.-Iran peace talks.
In other corporate news, French defence group Thales saw its shares fall 1.4% after reaching an agreement to purchase the Gorgé family's stake in drone technology company Exail, ahead of a planned bid for the remaining shares. Luxury racecar maker Ferrari gained 2% following the launch of a limited-edition 12-cylinder model featuring a manual gearbox, a move aimed at appealing to traditional enthusiasts.