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

easyJet is at the center of a bidding war after agreeing in principle to terms for an Apollo cash offer, even as it had moved toward Castlelake’s higher bid. The airline said it was initially ready to accept a sweetened £5.5 billion takeover from Castlelake after the group submitted a fifth proposal at 690p per share. easyJet then agreed in principle on Apollo’s offer at 715p per share, describing it as delivering “a superior outcome” for shareholders. Apollo’s offer price represents a premium of roughly 81% versus the closing easyJet share price on 28 May, the last business day before the start of the Castlelake offer period. Shareholders could also opt for the “Stub Equity Alternative” to roll their holdings into the vehicle through which Apollo funds would hold the investment. Under UK takeover rules, Apollo has until 17:00 BST on 7 August to make a firm offer or walk away.