Budget carrier EasyJet accepts US firm's beefed-up takeover bid

Airline takeover talks intensify as EasyJet reaches an in-principle agreement with US private equity firm Castlelake after receiving a revised bid valuing the carrier at over £5 billion ($6.7 billion). EasyJet says Castlelake’s fifth proposal is £6.90 per share and the board is “minded to recommend” it to shareholders if a firm offer is made by August 3, the deal deadline. Castlelake manages about $38 billion in assets and has repeatedly pursued EasyJet after four earlier offers were rejected. EasyJet linked prior resistance to market pressure, including losses widening in the wake of the Middle East war that drove jet fuel costs up and disrupted travel demand. The company opened talks on June 25 and said Castlelake supports its fleet modernization program. However, EasyJet warned there is no certainty a final offer will be made. Rival Ryanair reported a 35% profit rise but also cautioned about challenges ahead.