EasyJet Agrees in Principle to £5.7bn Apollo Takeover Bid

EasyJet agreed in principle to a £5.7 billion takeover proposal from Apollo Global Management, days after accepting a rival offer from Castlelake. The carrier said Apollo's proposal delivered a superior outcome for investors than the £5.2 billion Castlelake bid it had accepted over the weekend. Apollo's offer values EasyJet at £7.15 per share compared with Castlelake's £6.90 per share proposal.

Background to the Bidding EasyJet is one of Europe's largest airlines, employing more than 19,000 people and operating around 1,200 routes across 35 countries. The company was founded in 1995 and the Haji-Ioannou family retains about a 15% stake. Castlelake had made a series of offers that EasyJet initially rejected, accusing the firm of trying to buy the airline on the cheap.

On Sunday, EasyJet reached an agreement in principle with Castlelake over a potential £5.2 billion takeover.

European Union regulations require the carrier to be majority-owned by EU citizens for any takeover to proceed. Castlelake had proposed partnering with two EU nationals to meet this condition. Apollo said it would take all necessary steps to meet any EU conditions surrounding the deal.

EasyJet shares jumped nearly 15% on Friday to around 673p. Apollo has until 17:00 on 7 August to make a firm bid or walk away. Castlelake's deadline is 3 August. In a short statement, Castlelake said it noted the new development and was considering its options.

" — Susannah Streeter, chief investment strategist at Wealth Club >"The bidding war now comes down to price.