0811 GMT - Continental's agreement to sell ContiTech has come in at the top end of the 3.5 billion-euro to 4 billion-euro range that was expected, JPMorgan analysts Jose M Asumendi and Piyush Singla write. The company has agreed to sell the unit to Lone Star Funds at an agreed enterprise value of 4 billion euros plus a potential performance-based component of up to 250 million euros in subsequent years. JPMorgan sees it as a positive step for investors, further focusing the group's attention on the tire division, allowing the stock's multiple to rerate as it delivers higher margins over the next 12 months. The bank rates Continental stock at overweight with a 78 euro price target. Shares fall 1.4% to 74.94 euros. (dominic.chopping@wsj.com)
0702 GMT - EasyJet shares are set to rise after the budget carrier agreed in principle to Castlelake's sweetened takeover offer, Citi analysts say in a research note. The latest proposal significantly increases the likelihood of a successful takeover, Citi says. Castlelake's fifth indicative offer, valuing easyJet at around $7 billion, has received a favorable initial response from the board. While the proposal remains conditional on regulatory approvals and other requirements, the deadline has been extended to Aug. 3. The analysts expect the shares to rise as investors assign a higher probability to the deal, noting that the previous share price implied only a roughly even chance of a takeover being completed. (nina.kienle@wsj.com)