EasyJet has turned down a fourth takeover proposal from US investment firm Castlelake, rejecting the £4.9 billion offer as inadequate despite leaving the path open for future bids.
The latest offer, valued at 650p per share, was dismissed by the board, which indicated it remains receptive to improved terms that better reflect the airline’s strategic value and growth prospects.
9 billion suggests Castlelake is attempting to bridge the valuation gap, but EasyJet’s stance indicates that the current premium remains below the threshold required to secure shareholder approval.
This marks the latest escalation in Castlelake’s pursuit of the UK-based low-cost carrier, following the rejection of a previous £4.74 billion bid that the board had characterized as opportunistic.
The incremental increase to £4.9 billion suggests Castlelake is attempting to bridge the valuation gap, but EasyJet’s stance indicates that the current premium remains below the threshold required to secure shareholder approval.
The standoff highlights the tension between private equity’s acquisition strategy and the airline’s valuation expectations.
With the budget travel sector facing ongoing cost pressures and competitive dynamics, investors are closely monitoring whether Castlelake will raise its offer further or withdraw.