EasyJet seeks higher Castlelake offer after rejecting $6.3 billion bid
EasyJet is resisting a takeover approach from U.S. investment firm Castlelake after concluding that the initial proposal does not fully reflect the airline's value. Shareholders familiar with the discussions are looking for at least £600 million more, a threshold that points to an offer of £7 a share or above.
Highlights
- EasyJet rejected Castlelake's $6.3 billion bid, with shareholders seeking a higher price of at least £7 a share or £5.3 billion valuation.
- Castlelake made its bid public, citing EasyJet's 'unwillingness to engage meaningfully,' and offered a partial equity alternative to attract investor support.
- The public standoff underscores sector-wide valuation tensions as investors assess recovery prospects and growth trajectories in the European aviation market.
Bid terms and valuation gap
As reported by the Reuters, citing leading shareholders and people with knowledge of the talks, EasyJet and its investors are holding out for a materially higher proposal than Castlelake's current approach.The airline rejected Castlelake's $6.3 billion bid, saying the offer undervalued the business. One large unnamed investor told the FT that engagement could follow if the price moves to "seven plus", referring to at least £7 a share and an overall valuation of about £5.3 billion.
Pressure on negotiations and sector implications
Castlelake said in a statement earlier on Monday that EasyJet's "unwillingness to engage meaningfully" was one reason it decided to make the bid public. The proposal also includes a partial equity alternative for investors, adding flexibility to the structure as the firm tries to win support.Castlelake declined to comment on the FT report, while EasyJet did not immediately respond to Reuters requests for comment. The public standoff highlights the valuation tensions around airline assets as investors weigh recovery prospects, operating performance and future growth in the European aviation sector.
Our earlier article covered Congress’s bipartisan push to pass the ROAD to Housing Act, aimed at improving U.S. housing affordability by expanding supply and limiting large institutional ownership of single-family homes. We noted the compromise version keeps a 350-home cap for private equity investors while easing rules for new construction and tying some federal funding to local housing-growth efforts.
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