EasyJet has rejected a fourth takeover offer from US investment firm Castlelake, worth £4.93bn — a bid the airline’s board said “substantially undervalues” the company and raises “significant questions of deliverability”.
The low-cost carrier, based at Luton airport, said the latest proposal of £6.50 a share followed three earlier offers at £5.60, £6 and £6.25 a share. Castlelake now has until 17:00 BST on 5 July to table a firm offer or walk away, a spokesperson confirmed.
“EasyJet rejects Castlelake's £4.93bn takeover bid, calling it undervalued and questioning its deliverability.”
EasyJet’s board, having reviewed the bid with its advisers, said it continued to regard the offer as too low, especially given the wider context: the airline’s share price had fallen about 30% over the past year before news of Castlelake’s interest emerged, driven down by investor fears about the consequences of the Iran war.
The company also voiced “concern” over Castlelake’s ownership structure and its ability to deliver any offer, demanding “satisfactory assurances and commitments” on those issues. Under the proposed deal, EasyJet would be 49% owned by Castlelake and co-investors including Brookfield Asset Management, with the remaining 51% held by individual European Union investors.
Castlelake, which manages assets worth $36bn (£27.3bn), has seen its overtures repeatedly dismissed. The FTSE 250 firm’s stance suggests it believes the bids are opportunistic, capitalising on a temporarily depressed share price. Whether Castlelake can address the board’s deliverability doubts before the 5 July deadline remains unclear.