EasyJet rejects reported £4.7bn takeover approach from U.S investment firm

Europe-wide airline reportedly accused Castlelake of trying to buy it “on the cheap” after three approaches were rejected this month

EasyJet has reportedly rejected a £4.74bn takeover approach from U.S investment firm Castlelake, accusing the group of trying to buy the airline “on the cheap”.  

The airline is said to have dismissed three approaches from Castlelake this month, with the U.S firm now making details of its latest proposal public so shareholders can assess it.

Under UK takeover rules, Castlelake has until Friday to make a firm offer or walk away.

EasyJet is one of Europe’s largest airlines, carrying more than 90 million passengers last year and operating across 38 countries on more than 1,200 routes.

The carrier reportedly described Castlelake’s offer as “highly opportunistic”, arguing that its share price had been temporarily depressed partly because of the impact of the Iran war on the travel sector.

EasyJet is also said to have raised concerns about the proposed ownership structure, describing it as “opaque” and saying it had “considerable reservations” about the latest proposal.

Castlelake’s latest reported offer would give shareholders 625p a share, a 24 per cent premium to EasyJet’s closing price last Friday.

The investment firm, which reportedly already owns a 2.14 per cent stake in EasyJet through funds it manages, said the bid offered “compelling value” to shareholders.

Castlelake said: “Following the rejection of three proposals by the EasyJet Board, and given its unwillingness to engage meaningfully, Castlelake is announcing this Third Proposal to enable EasyJet shareholders to consider its merits.”

It added: “Castlelake’s ambition is to support EasyJet as a stronger, more resilient European airline under European control, respecting EasyJet’s valuable airline assets and continuing to sustain its network.”

EU rules require EasyJet to remain majority-owned by EU citizens. Castlelake reportedly said it had proposed a structure that would be a “deliverable solution to ensure compliance with all applicable regulatory requirements”.

The dispute comes as airlines face renewed pressure from fuel costs, geopolitical disruption and uncertainty over consumer travel demand.

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_{Main image: EasyJet, one of Europe’s largest airlines, has reportedly rejected a £4.74bn takeover approach from US investment firm Castlelake. Credit: MarcelX42 / CC BY-SA 4.0}