easyJet has rejected three separate takeover approaches from Castlelake LP, prompting the US investment firm to take its latest proposal – valuing the UK low-cost carrier at around £4.74bn ($6.3bn) – directly to shareholders, according to a report by Bloomberg.
The offer, pitched at 625 pence per share, sits well above where the stock is currently trading, underlining a gap between bid expectations and market pricing. Despite Castlelake’s approach, EasyJet shares rose as much as 5.4% on Monday to 531.2 pence, though the airline remains below the implied offer level.
easyJet has dismissed the proposals, arguing the bidder is attempting to acquire the company on unduly favourable terms and describing key elements of Castlelake’s structure as unclear. The airline also raised concerns over leverage and conditionality in the latest offer.
Castlelake, which would require aviation partners to secure control of a European airline, has linked up with industry figures including Mark Breen and former EasyJet chief operating officer Peter Bellew. Their prospective roles in any transaction remain unspecified, though Bellew’s return would mark a notable twist given his earlier high-profile exit from the carrier.
The US firm has also criticised EasyJet’s board for what it called limited engagement, and has indicated it will update the market on its intentions later this month.
easyJet, meanwhile, continues to navigate a challenging operating backdrop, including weaker demand trends and higher fuel costs, with recent reporting showing a first-half loss. Despite this, the airline’s network strength – particularly slots in key European airports and a modern Airbus A320 fleet – continues to underpin strategic interest from potential bidders.
