July 6 (Reuters) – European shares were flat on Monday after a strong previous week, with investors focussing on new deals, especially the take-private offer for UK’s easyJet.
The pan-European STOXX 600 index was at 652.84 points as of 0710 GMT after posting its strongest weekly performance since mid-May on Friday.
EasyJet shares rose 11% after the British budget airline agreed in principle to a sweetened takeover offer from U.S. investment firm Castlelake, valuing the carrier at up to £5.5 billion ($7.34 billion).
The broader travel and leisure sector led gains among sectors with a 1% rise.
Much of the gains for European shares have been driven by relief that Middle East tensions have subsided and oil prices have fallen close to pre-conflict levels. However, with no breakthrough in peace talks between U.S. and Iran, developments in the region will be closely monitored.
Thales fell 1.4% after the French defence group reached an agreement to buy the Gorgé family’s stake in drone technology company Exail ahead of a planned takeover bid for the remaining shares.
Ferrari gained 2% after the luxury racecar maker launched a limited-edition 12-cylinder model with a manual gearbox, appealing to traditional fans of roaring petrol engines and hands-on driving. The unveiling of the company’s first electric vehicle earlier this year sent shares reeling.
(Reporting by Johann M Cherian and Tharuniyaa Lakshmi in Bengaluru; Editing by Harikrishnan Nair)
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