EasyJet Plc rejected a fourth takeover proposal from U.S.-based investment firm Castlelake LP on Thursday [1, 2].
The rejection signals a continuing standoff between the UK budget carrier and the investment firm, as EasyJet seeks a valuation that better reflects its market position. The outcome of these negotiations could shift ownership of one of Europe's largest low-cost airlines.
Castlelake's latest bid was valued at £4.93 billion, or approximately $6.5 billion [1]. Other reports placed the value of the fourth proposal at £4.74 billion, or roughly $6.26 billion [2]. Despite the sweetened terms of this fourth attempt [1, 5], the airline's leadership said the offer still undervalued the company.
EasyJet is reportedly holding out for at least £600 million more than the current proposal [3]. While the board turned down the bid, the airline said it would grant Castlelake limited access to commercial information [1, 2]. This move suggests that while the current price is insufficient, the company remains open to a more attractive offer [1, 3].
Ownership of the airline remains complex. The founder's family currently maintains a 15.3 percent shareholding in EasyJet [4]. Any successful acquisition would require navigating these significant stakes, and ensuring the price meets the expectations of both the board and major shareholders.
This latest development follows a previous bid made on June 22 [2, 5]. The airline's willingness to share data while rejecting the cash offer indicates a strategy of leveraging transparency to drive up the final acquisition price.
“EasyJet rejected a fourth takeover proposal from US-based investment firm Castlelake LP on Thursday.”
The tension between EasyJet and Castlelake highlights a gap in valuation typical of high-stakes aviation acquisitions. By granting limited commercial access despite rejecting the bid, EasyJet is attempting to prove its intrinsic value to the suitor to secure a premium. The presence of the founder's family as a significant shareholder further complicates the process, as any final deal must satisfy a concentrated block of ownership.
