EasyJet has accused a US investment firm of trying to buy the airline “on the cheap” after rejecting a £4.74bn takeover offer – the third approach this month.
The carrier said Castlelake’s latest proposal was “highly opportunistic”, arguing that its share price had been “temporarily depressed” partly due to the impact of the Iran war on the travel sector. Under the offer, shareholders would receive 625p per share, a 24% premium to last Friday’s closing price.
“EasyJet rejects £4.74bn takeover bid from US firm Castlelake, calling it 'highly opportunistic' and 'on the cheap'.”
Castlelake, which already owns a 2.14% stake in the airline through its managed funds, said its bid “offers compelling value” and made details public to allow shareholders to assess the plan. The US firm has until Friday to make a firm offer or walk away under takeover rules.
“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,” the firm said.
EasyJet is one of Europe’s largest airlines, carrying more than 90 million passengers last year across 38 countries on over 1,200 routes.
European Union regulations require EasyJet to be majority-owned by EU citizens. Castlelake said it had proposed an ownership structure that would be a “deliverable solution” to comply with all applicable rules. This involves partnering with two EU nationals: Peter Bellew, a former chief operating officer of EasyJet who also held the same role at Ryanair, and Mark Breen, who runs an aerospace consultancy and has held senior roles at several airlines, including in the Middle East.
Castlelake said its 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.”
But EasyJet dismissed the structure as “opaque”, saying it did not present any basis for assessing the deliverability of the takeover plan.
Peter Bellew left EasyJet in 2022 after a turbulent period in which staff shortages led to major disruption and cancellations. Mark Breen has previously held senior roles at a number of airlines, including several in the Middle East.
With the Friday deadline approaching, Castlelake must now decide whether to proceed with a formal offer or walk away from its attempt to buy one of Europe’s biggest low-cost carriers.