Bidding war emerges as easyJet agrees £5.7bn takeover by Apollo

A bidding war is unfolding for easyJet after the budget airline agreed in principle to a possible cash offer from Apollo while previously moving toward Castlelake. easyJet said on Monday it was ready to accept a sweetened £5.5 billion takeover from Castlelake after the private equity group tabled a fifth proposal at 690p per share. It then reached agreement in principle on Apollo’s offer at 715p per share, saying it “delivers a superior outcome” for shareholders. Apollo’s price implies a premium of about 81% over the closing easyJet share price on 28 May, the last business day before the Castlelake offer period began. As an alternative to cash, shareholders may choose the “Stub Equity Alternative” to roll their stake into the vehicle holding the investment. Under UK takeover rules, Apollo has until 17:00 BST on 7 August to announce a firm offer or walk away.