EasyJet shares jumped more than 10% in early London trading on Monday, driven by reports that the proposed acquisition by US investment firm Castlelake has reached its final stages.
The rally reflects growing market conviction that the deal, valued at up to £5.5 billion, is poised to close after months of negotiation and regulatory scrutiny.
The price action marks a significant repricing of the airline's equity, as investors bet on the certainty of the transaction.
Castlelake, which has made five offers for the Luton-based carrier, stands to pay £6.90 per share under the latest agreement in principle announced on Sunday.
The premium embedded in the offer has been a key driver of the stock's recent volatility, with the latest surge suggesting that the risk of deal failure has diminished materially.
This development caps a prolonged period of uncertainty for EasyJet, which has faced pressure from rising fuel costs and competitive dynamics in the European low-cost market.