Bank of America Increases Stake in easyJet

EasyJet PLC, a prominent UK-based airline, announced a significant change in its shareholder structure. Bank of America Corporation has adjusted its holdings, resulting in a total stake of 10.971%. This adjustment occurred on April 18, 2024, and was disclosed to easyJet on the following day. The US-based financial institution now holds 83,164,523 voting rights in the airline, combining direct and financial instrument-derived rights.

The new holding thresholds show an increase from the previous notification where Bank of America held a total interest of 10.022%. The voting rights attached directly to shares constitute about 3.320%, while those through financial instruments, primarily swaps and other derivatives, contribute significantly more at 7.651%. This change underscores a strategic investment move by Bank of America, reflecting its growing interest and perhaps confidence in easyJet's business trajectory.

Various types of financial instruments, including physical swaps and options, have been utilized by Bank of America to adjust its position. Notably, the largest volume comes from cash-settled swaps expiring in early to mid-2025, indicating a forward-looking strategy by the American banking giant.