EasyJet comments on a possible takeover approach from US firm Castlelake, calling it 'highly opportunistic'.
Key facts
- •Castlelake is considering a takeover bid for EasyJet, valuing it at a minimum of £3.06bn
- •The bid interest comes as EasyJet's share price has been affected by worries over the Iran war's impact
- •EasyJet describes the possible takeover bid as 'highly opportunistic'
- •Castlelake owns about 2.14% of EasyJet
- •Any offer from Castlelake would be for 'no less than' 403.23p a share
- •Castlelake has until 17:00 BST on 26 June to make a firm offer or walk away
EasyJet has described a possible takeover bid from US investment fund Castlelake as 'highly opportunistic'. Castlelake revealed it was considering an offer for the airline, valuing it at a minimum of £3.06bn. The bid interest comes as EasyJet's share price has been affected by worries over the Iran war's impact on the airline sector.
Takeover Details
Castlelake owns about 2.14% of EasyJet and has said any offer would be for 'no less than' 403.23p a share. EasyJet's shares closed at 398p on Friday before the announcement and surged up to 12% on Monday. However, the stock was down over 30% in the past year before the news of the potential bid.
EasyJet's Response
EasyJet noted the 'considerable regulatory, financial and other execution challenges' associated with a potential takeover. Despite this, the airline said it would consider any proposal to maximise shareholder value. Castlelake has until 17:00 BST on 26 June to make a firm offer or walk away under UK takeover rules.
Castlelake's Background
Castlelake has assets under management worth £27bn and has been involved in talks with other airlines. In January, it entered talks with bankrupt US carrier Spirit Airlines over a possible takeover. Castlelake has also previously bailed out collapsed Scandinavian Airlines (SAS) and then sold its shares to Air France-KLM.
This article was independently rewritten by ManyPress editorial AI from reporting originally published by BBC Business.
