EasyJet is in discussions with US private equity firm Castlelake regarding a potential acquisition, following the airline's formal rejection of a previous takeover proposal.

The carrier's board had previously dismissed a £4.74 billion offer from Castlelake, characterizing the bid as a "highly opportunistic" attempt to acquire the business at a discount.

The new engagement suggests a potential reopening of negotiations or a revised approach to the transaction.

The development marks a significant shift in the ongoing saga between the European low-cost carrier and the US investor.

Castlelake, which has been pursuing a stake in EasyJet, had faced resistance from the board over valuation concerns.

The previous rejection was part of a broader effort by EasyJet to maintain independence and secure what it deemed a fair price for the business.