Three lions in the Square Mile are suffering a setback as investment banks and dysfunctional boards cast dark clouds over the London Stock Exchange.

The disposal of budget airline Easyjet at an underwhelming price to private equity marauder Castlelake is disturbing. 

Chairman Stephen Hester, advised by Evercore dealmaker Simon Robey, is proving a skilful seller not a builder of enterprises.

The fate of the media and entertainment arm of Britain’s commercial broadcaster ITV as part of Sky, itself part of the NBCUniversal empire, poses risks.

An economically stressed Labour government, anxious not to upset Universal’s £2bn investment in a UK theme park, may well capitulate.

At Ocado, a boardroom bust-up over the leadership of founder Tim Steiner has added a fresh uncertainty to the future of the online grocer, which is among Britain’s undervalued digital innovators.

Easyjet shareholders have the right to vote on the Castlelake takeover. That’s more than is promised for ITV investors under existing listing rules. 

They are disenfranchised, as are those affected by Unilever’s proposed disposal of its food arm, which accounts for around 25 per cent of the business, to US spice firm McCormick.

Hester’s decision to accept the bid for Easyjet came despite boardroom dissonance. Industry sources suggest the £5.5billion price is below the airline’s intrinsic value. Whether founder-shareholder

Stelios Haji-Ioannou is willing to tender his shares at this price is unclear.

What is certain is that the hidden value of Easyjet slots at Gatwick, and its ripening options in short-haul Airbus leases, is enormously valuable. Castlelake could make an early killing.

We also know from private equity ownership of veterinary services that consumers end up paying more. 

An obstacle to the deal is EU rules regarding control of airlines. The contrived ownership structure devised by Castlelake may test scrutiny from European competition authorities.

Likewise at ITV, the takeover of a much-admired broadcaster should not be a done deal given the public interest.

Creative tension

When ITV celebrated its 70th anniversary in September last year, Chancellor Rachel Reeves turned out at the Guildhall to praise the company’s contribution to Britain’s creative industries.

Yet despite its ability to tap into large scale audiences in the tens of millions, it has struggled to win the confidence of investors. 

In contrast to the supercharged valuations achieved for US creative assets, ITV has been left behind.

Chief executive Carolyn McCall sought to address the valuation problem with the launch of the ITVX digital service and by investing in the production arm ITV Studios. 

The adopted solution, the sale of linear news and entertainment services to Sky, is unsatisfactory.

Shareholders stand to eventually collect a special payout of £950million. But as a small part of NBCUniversal, the growth arm of Comcast, its future will always be uncertain. 

As part of the deal, Comcast offshoot Sky will be required to take on ITV’s public service obligations, which include complex rules governing regional content. Ofcom will take a good look at how robust the arrangements will be.

Of equal concern is the fate of ITV Studios, enhanced by the addition of Love Productions (maker of The Great British Bake Off), as a separate quoted entity. At a time of rapacious takeovers, the chances of survival as an independent entity firm must be questioned.

ITV might have stood a better chance if the cash promised to shareholders was used as a war chest to fund programming and acquisitions. That would be a more convincing creative narrative.

Not a robot

Online grocer and M&S partner Ocado has never fully lived up to its promise. The loss of key contracts with Kroger and Sobeys in North America has been a blow.

The botched dumping of joint founder Tim Steiner as chief executive by chairman Adam Warby, with a prolonged transition period, doesn’t even get close to papering over a boardroom imbroglio.

Tech history suggests that parting with the big brain behind the enterprise is rarely wise.