business
EasyJet Rejects £4.74 Billion Takeover Offer from Castlelake That Carries 24 % Premium
EasyJet turned down a £4.74bn bid from U.S. investment firm Castlelake, calling the approach highly opportunistic. Castlelake had made three offers this month before disclosing its latest proposal of 625p per share.
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EasyJet rejected a takeover offer worth £4.74bn from U.S. investment firm Castlelake. The airline described the bid approach as highly opportunistic. Castlelake said it had made three approaches to EasyJet this month, all rejected.
The firm made details of its latest offer public after those rejections. Under the proposal, EasyJet shareholders would receive 625p per share, a 24% premium to last Friday's closing price. Castlelake already owns a stake of about 2.14% in EasyJet through the funds it manages.
Castlelake has until this Friday to make a firm offer or walk away. "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 stated.
Castlelake said the bid offers compelling value and that its ambition is to support EasyJet as a stronger European airline under European control.
It added that it had proposed an ownership structure to meet regulatory requirements. European Union regulations require EasyJet to be majority-owned by EU citizens.
