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FTSE Starts June Lower, but EasyJet Jumps on Buyout Bid

  • EasyJet climbs as Castlelake considers takeover bid
  • Bluefield Solar Income ​Fund surges as Drax agrees to buy company
  • ME Group slides after profit ‌warning

June 1 (Reuters) - The main UK indexes kicked off June on a sombre note on Monday, following fresh signs of economic damage from the Middle East conflict, although M&A updates helped lift some stocks.

The blue-chip ​FTSE 100 dipped 0.16% by 1017 GMT, while the midcap FTSE 250 was ​down 0.11%. Both the indexes marked a second month of gains in ⁠a row on Friday.

  • EasyJet shares jumped almost 10% after U.S. investment firm Castlelake said ​it was considering a potential takeover bid for the British budget airline.

  • Bluefield Solar Income Fund ​surged 15.9% after power group Drax agreed to buy the renewable energy-focused investment company in a deal valued at about £561 million ($755.3 million). Drax's shares rose 1.8%.

  • Bluefield Solar and EasyJet were the top gainers in ​the FTSE 250 index.

  • Energy stocks, including BP and Shell, rose about 1% each, tracking ​higher oil prices, as Iran and the U.S. traded strikes and Israel ordered troops to move further ‌into ⁠Lebanon in its battle with Tehran-backed Hezbollah.

  • British manufacturers raised their prices last month at the fastest rate since June 2022 in response to a big increase in costs as the Iran war disrupts supply chains, according to a survey likely to concern the Bank of ​England (BoE).

  • The BoE is closely ​watching the degree ⁠to which higher energy prices caused by the closure of the Strait of Hormuz spread through the economy, but it has kept ​interest rates unchanged for now.

  • ME Group International plunged 27% to a ​more-than-three-year low ⁠after the instant-service equipment group cut its profit before tax forecast for full year 2026, as a shift in consumer spending patterns due to the Middle East conflict hurt its ⁠revenue in ​April.

  • Wise's London-listed shares tumbled 13% after a report by ​the Bureau of Investigative Journalism said the money transfer company is being investigated by prosecutors in Belgium over €500 ​million ($582.5 million) worth of suspicious transactions.

Reporting by Sruthi Shankar in Bengaluru; Editing by Shinjini Ganguli

Source: Reuters


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