12th May 2020 14:58
(Alliance News) - easyJet PLC's founder on Tuesday said he is willing to offer GBP5.0 million to anyone with information that could stop the FTSE 100 carrier's GBP4.5 billion aircraft order from manufacturer Airbus SE.
Stelios Haji-Ioannou's reward to a "whistleblower" comes just over a week before easyJet's shareholders vote on the future of its most senior board members.
Haji-Ioannou, easyJet's largest shareholder thanks to his 34% stake, said: "Stelios is willing to offer a reward of up to GBP5.0 million in cash out of his own money to any whistle-blower who provides useful information that leads to the cancellation of the order for easyJet to buy an additional 107 Airbus aircraft at the cost of GBP4.5 billion which easyJet simply cannot afford."
It's the latest bizarre twist in a battle that has seen Haji-Ioannou routinely lambaste easyJet's top team, including Chair John Barton, Chief Executive Officer Johan Lundgren, and Chief Financial Officer Andrew Findlay.
A general meeting of easyJet shareholders will take place on May 22, with investors voting on whether or not to oust Barton, Lundgren and Findlay.
Last Thursday, Haji-Ioannou alleged that the three investors backing the airline's management are working on behalf of Airbus.
He said Invesco, Ninety One UK Ltd and Phoenix Asset Management are trying to keep the company's board members in their jobs, so they can continue paying more money to Airbus. The three companies jointly own a 14% stake in easyJet.
"I am absolutely convinced that these three people are straw men for Airbus money trying to keep this order in place," Haji-Ioannou said at the time, saying he had come to that conclusion after having spoken to all three "at length" but without offering any specific proof of his allegation.
And earlier in March, the founder warned easyJet will become insolvent by December should it proceed with the order from Airbus, who he labelled as "masters of bribery".
In April, in response to the Haji-Ioannou's stinging attacks, easyJet issued a statement of its own, noting that it would be forced to pay heavy costs should it cancel the Airbus order.
It added that it cannot cancel the contract through a force majeure, meaning an unforeseen circumstance outside one party's control which prevents it from fulfilling its contractual obligations with another.
easyJet shares were 1.9% higher at 509.40 pence each in London on Tuesday afternoon. The stock is down 64% so far in 2020, however.
By Eric Cunha; [email protected]
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