Analysts warn over easyJet dispute
ANALYSTS have warned that the bitter dispute between easyJet owner Sir Stelios Haji-Ioannou and the budget airline could “undermine the value of the company’s shares”.
A note issued by stockbroking group Numis yesterday said that the ongoing argument over the use of the “easy” brand makes it “difficult to see marginal new investors being enticed into the shares”.
Numis, which downgraded its recommendation of easyJet to “reduce”, also warned that current shareholders could lose patience given the circumstances.
The rating change is on the back of a letter issued by Stelios’ lawyers Bird & Bird on behalf of easyGroup giving the airline until 17 October to improve its performance, while threatening to remove easyJet’s right to the “easy” brand if it doesn’t meet his requirements.