EasyJet reaches 'agreement in principle' over potential takeover

EasyJet reaches an agreement in principle over a potential takeover worth around £5.2 billion, after talks with US investment firm Castlelake. The Luton-based airline said its board and Castlelake reached the understanding on 4 July, pricing the proposal at £6.90 per share, following the rejection of four earlier bids from Castlelake ranging from £5.60 to £6.50. The parties stressed the terms are not final: Castlelake still needs regulatory clearances and the required transaction approvals. A key hurdle is EU ownership rules requiring easyJet to be 51% owned by a European company, despite Castlelake being US-based. Castlelake has until 17:00 on 3 August to either announce a firm intention to bid or walk away, with any eventual offer subject to a shareholder vote. easyJet employs more than 19,000 people and flies about 1,200 routes across 35 European countries. Shares closed on Friday at £5.58.