Go boss to quit if easyJet wins
EASYJET'S £400m bid for low-cost rival Go has exploded into a blazing row between the chief executives. Barbara Cassani, boss of BA spin-off Go, denied claims by Ray Webster, her counterpart at easyJet, that she had been offered an executive directorship of the enlarged airline and that she was mulling it over.
As the simmering row between the pair reached boiling point, easyJet shares slumped again on news of a second takeover deal.
In an extraordinary move, Cassani, who stands to make £20m from the bid, issued a formal statement saying that she 'has never been offered a role', does not want one and will quit if the takeover goes ahead. The management team is 100% behind her, she added.
On top of its bid for Go, easyJet announced that it is prepared to pay up to £32m for British Airways' struggling German commuter operation Deutsche BA. It is taking a 14-month option while it examines the business. A deal should go through in spring of next year.
'What on earth are they doing?' asked a senior source close to British Airways, which has suffered as budget airlines woo its customers. British Airways carefully buries DBA's losses in its results statements.
Webster said the takeover of Go disclosed on Friday, could be agreed 'in a few days'. The two firms are still haggling about the price. Unusually, Webster admitted the idea first came from investment bankers hunting for fees. A cash call to pay for it may help founder and retiring chairman Stelios Haji-Ioannou to sell shares.
Go revealed £17m full-year pre-tax profits, trumping easyJet's announcement of maiden £1m first-half profits. In last year's winter half it lost £10m.
