EASYJET REJECTS £4.7BN TAKEOVER BID – Airline says offer undervalues company
Budget airline easyJet has rejected a £4.74 billion takeover bid from U.S. investment firm Castlelake, describing the proposal as “highly opportunistic” and accusing the firm of trying to buy the airline at a discount.
Castlelake revealed it had made three separate approaches this month, all of which were turned down. Its latest offer values EasyJet at 625 pence per share, a 24 percent premium on the airline’s recent closing share price.
EasyJet argues its stock has been temporarily weakened by disruption to the travel sector linked to the Iran conflict and says the bid fails to reflect the company’s long-term value. The airline also questioned the transparency of Castlelake’s proposed ownership structure, which is designed to comply with European rules requiring majority EU ownership.
Castlelake, which already owns a small stake in EasyJet, says its proposal would create a stronger and more resilient European airline. Under UK takeover rules, the investment firm now has until Friday to submit a formal offer or withdraw its bid
