EasyJet’s top holders hold out for bid from Castlelake: FT

EasyJet’s largest shareholders are reportedly seeking a higher bid from Castlelake, according to the Financial Times. The board of the British budget airline has rejected Castlelake’s latest offer of £6.50 per share, valuing the company at approximately £4.9 billion, arguing that the proposal significantly undervalues the business and raises concerns about the ownership structure and deliverability of the deal.

The FT reported that key investors are pushing for a bid of at least £7 per share, which would value EasyJet at around £5.3 billion. In response to the rejection, Castlelake has extended its timeline, giving the airline until July 5 to improve its offer or walk away. The firm has also added Brookfield Asset Management to its bidding consortium, aiming to strengthen its position.

EasyJet has agreed to limited commercial discussions with Castlelake, in the hope of securing a more attractive proposal that better reflects the company’s value and future potential. The airline’s shares rose 6% following the announcement, signaling investor optimism about a potential improved offer. However, the board remains cautious, emphasizing the need for a bid that aligns with the company’s strategic and regulatory requirements, including EU ownership rules.