EasyJet opens talks with Castlelake after rejecting £4.9bn takeover offer
Summary
EasyJet has rejected a £4.9 billion takeover offer from the US firm Castlelake but has agreed to share limited commercial information to help Castlelake make a better bid. Castlelake must improve its offer by July 5 or end its pursuit of the airline.Key Facts
- EasyJet turned down Castlelake’s fourth offer of 650p per share, saying it undervalues the company.
- The airline is open to sharing some business information to encourage a higher and more attractive bid.
- Castlelake’s previous offers started at 403p per share and rose to 625p before reaching 650p.
- Castlelake manages $38 billion and invests in aviation finance; it already owns a small part of EasyJet.
- European airlines must have majority ownership by EU nationals to keep their operating licenses.
- Castlelake’s bid involves partners including Brookfield Asset Management and two EU-based aviation executives.
- The final bid vehicle structure is planned to be 49% owned by Castlelake and partners, and 51% by EU nationals Bellew and Breen.
- EasyJet’s share price rose by 6% after talks with Castlelake were announced.
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