Analysis: Who benefits from an easyJet takeover?

The analysis centers on who benefits from an easyJet takeover bid, as U.S. investor Castlelake pushes forward with a higher offer. Castlelake’s “fifth proposal” follows an agreement in principle on key financial terms valuing easyJet at £5.5 billion, up from £4.9 billion last week and its initial £4.2 billion. The easyJet board indicated the terms “are at a value” it could recommend to shareholders, while setting an August 3 deadline for Castlelake to confirm a firm intention or withdraw. Castlelake’s strategy is linked to aircraft leasing, with roughly 400 aircraft and investment returns higher than airlines. easyJet operates 356 aircraft with nearly 300 more on order and purchase rights for another 100. A major constraint is the EU rule requiring at least 51% European ownership, potentially via investors including ex-Ryanair COO Peter Bellew and Mark Breen, chief executive of Oneiros Aerospace.