Easyjet is expected to announce today the completion of negotiations to take over Go, its smaller rival, in a deal that will create Europe's largest low- cost airline.
Advisers for EasyJet and 3i, the UK venture capital group and controlling shareholder in Go, were locked in a final round of talks last night to finalise the deal, which is expected to value Go at about £400 million sterling (€641 million).
EasyJet shares rose 28p yesterday to 453p.
The takeover is expected to be financed largely through an EasyJet rights issue, which will allow 3i to make an exit for cash and to announce big gains on its short-lived Go investment only two days before the troubled group announces its results on Thursday.
The venture capital group has been under severe pressure following large losses in its technology portfolio.
EasyJet is being advised by CSFB and 3i by Greenhill.
The sale of Go is likely to create about 20 overnight millionaires from the group of Go senior executives and managers who participated in the £110 million sterling management buy-out from British Airways in June last year.
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