EasyJet Accepts £5 Billion Castlelake Bid After 4 Rejected Offers
Updated
Updated · CBS New York · Jul 6
EasyJet Accepts £5 Billion Castlelake Bid After 4 Rejected Offers
3 articles · Updated · CBS New York · Jul 6
Summary
£5 billion values EasyJet in an agreed-in-principle takeover by U.S. private equity firm Castlelake, with the airline’s board saying it is minded to recommend the £6.90-a-share offer.
Nearly 10% sent EasyJet shares higher in London on Monday as investors reacted to a deal Castlelake must formalize by August 3 or abandon.
Four earlier bids had been rejected before the two sides reached this agreement, with Castlelake pitching support for EasyJet’s growth, transformation and fleet modernization.
Soaring jet fuel costs have recently squeezed airline profits, giving the bid broader significance for a carrier seeking to strengthen competitiveness, efficiency and sustainability.