News
Acquisition · Airline · Castlelake · EasyJet
EasyJet rejected a $6.3 billion acquisition bid from U.S. investment firm Castlelake, with the airline and its leading shareholders demanding at least £600 million ($794.46 million) more, aiming for a valuation of approximately £5.3 billion or £7 per share.
Castlelake made its $6.3 billion offer public earlier on Monday, stating EasyJet's "unwillingness to engage meaningfully" as a reason for this public disclosure. According to the Financial Times, citing leading shareholders and people with knowledge of the talks, EasyJet and its investors are holding out for a higher offer.
A large unnamed investor, as reported by the FT, indicated that engagement would occur if the price reaches at least £7 a share, which would value EasyJet at about £5.3 billion. EasyJet did not immediately respond to Reuters' requests for comment, and Castlelake declined to comment on the FT report.
This situation confirms EasyJet's belief that Castlelake's initial offer significantly undervalued the business.
