EasyJet shares soar 10% on Castlelake's $7.3B takeover bid for budget airline

EasyJet shares jumped nearly 10% on Monday after agreeing to a 5.5 billion pound (about $7.3 billion) takeover proposal from U.S. private-equity firm Castlelake, as low-cost carriers face jet-fuel pressure. By around 10 a.m. ET, London-listed stock was up 9.5% and reached a fresh 52-week high, after EasyJet accepted Castlelake’s bid that follows four rejected offers, including a 4.93 billion pound proposal last month. Castlelake has until Aug. 3 to finalize the cash offer of $6.90 per share or walk away. The backdrop includes higher fuel costs attributed to the Iran conflict’s impact on the Strait of Hormuz, which typically carries about 40% of Europe’s jet fuel supply. In May, EasyJet reported a 552 million pound pre-tax loss for six months ending March 31 despite revenue rising 12% to 4 billion pounds.