EasyJet reaches 'agreement in principle' over takeover bid

EasyJet reaches an “agreement in principle” over a potential takeover, after talks with US investment firm Castlelake. The low-cost carrier based in Luton said the parties agreed on a proposal put forward on 4 July at £6.90 per share, valuing the bid at around £5.2 billion. Castlelake, which manages funds with about a 2.14% stake, had previously made four offers that EasyJet rejected, ranging from £5.60 to £6.50 per share. The deal is not confirmed and remains subject to regulatory clearances and required approvals. EU rules would also require the company to be 51% owned by a European firm, which Castlelake says it would seek to satisfy. Castlelake has until 17:00 on 3 August to announce a firm intention or not to proceed, with any offer put to a shareholder vote. EasyJet employs over 19,000 people and operates about 1,200 routes across 35 European countries.