EasyJet Knocks Back £4.9bn Castlelake Bid But Deal Hopes Rise

EasyJet pushed back a Castlelake takeover bid, rejecting a fourth proposal of £4.93 billion, while signaling openness to improved terms. The UK budget carrier said it would grant Castlelake limited access to commercial data in hopes of attracting a more attractive offer after the board unanimously rejected the new bid. EasyJet shares rose as much as 8% to around £8.50, but remained below Castlelake’s latest £6.50 per-share offer. The company previously rejected a bid at £6.25 per share, and investors were reportedly aiming for a £7-a-share figure. Under UK takeover rules, Castlelake’s deadline to submit a firm offer was extended to 5 July. Analysts questioned whether Castlelake could meet EU ownership rules requiring carriers to be majority EU-owned and controlled while also satisfying investors on price. Castlelake named Brookfield Asset Management as a co-investor, alongside Peter Bellew and Mark Breen, with a proposed ownership split of 49% Castlelake/co-investors and 51% EU nationals.