EasyJet rejects fourth Castlelake bid but extends deadline for higher offer

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British no-frills airline EasyJet rejected a fourth informal takeover proposal from US private equity firm Castlelake, saying the £6.50 per share offer, totalling about £5 billion, substantially undervalues the carrier. However, EasyJet agreed to provide Castlelake with limited commercial information and requested an extension of the formal bid deadline to July 5, which UK regulators approved. Castlelake welcomed the constructive engagement, while EasyJet’s share price closed up 6.4 percent at £5.74, still far below the offer price. Under the proposal, Castlelake and co-investors would own 49 percent of the airline, with the remaining 51 percent held by EU nationals including industry veterans Peter Bellew and Mark Breen. If no formal bid is made by the new deadline, Castlelake must walk away for six months under UK takeover rules.

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EasyJet PLC
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Rejected lowball bid but extended deadline, signaling potential higher offer; shares rose 6.4%.