EasyJet rejects sweetened £4.9bn takeover approach

EasyJet rejected a renewed £4.9bn takeover approach from US investment firm Castlelake, though it agreed to enter discussions, the airline said on Thursday. The board received a “sweetened” indicative proposal at 650p per share, which included a partial alternative for shareholders to elect for unlisted, non-transferrable, non-voting shares in a vehicle within Castlelake’s structure. That was a 25p increase versus the carrier’s previous approach that valued EasyJet at £4.7bn, but EasyJet said the fourth bid continued to “substantially” undervalue the business and raised “significant questions of deliverability.” It therefore rejected the approach, while extending Castlelake’s access to “limited” commercial information. Castlelake must make a firm offer or walk away by 17:00 BST on 5 July. EasyJet said it remains “in a position of strength” supported by an investment-grade balance sheet and net cash, and Europe-wide scale, having carried over 90m passengers last year.