EasyJet rejects fourth Castlelake bid but opens books and extends takeover deadline

EasyJet rejected a fourth takeover proposal from US private equity firm Castlelake, saying the bid still undervalues the company and leaves doubts over whether a deal could be completed. The latest approach, received on 23 June, was priced at 650p per share, compared with the 625p terms Castlelake had made public on Monday. EasyJet said it would nevertheless provide Castlelake with limited commercial information after concluding that further due diligence could enable a higher offer. The structure includes a partial alternative allowing investors to receive unlisted, non-transferable and non-voting shares in an acquisition vehicle instead of cash. The vehicle was proposed to be 49% owned by Castlelake and co-investors including Brookfield Asset Management, with 51% held by EU nationals including Peter Bellew and Mark Breen. The airline reiterated concerns about ownership, regulatory timing and how delays could affect offer value, maintaining that the proposal remains “substantially undervaluing” the airline. The UK Takeover Panel extended Castlelake’s “put-up-or-shut-up” deadline by nine days to 5 July.