Castlelake makes third unsolicited offer to acquire EasyJet at £4.7bn, going public after board shows 'unwillingness to engage'
US investment firm Castlelake has made a formal, non-binding approach to acquire the entirety of UK budget carrier EasyJet, valuing it at approximately £4.7 billion (around $6.2 billion). After its first two proposals met resistance, Castlelake has now disclosed its third offer publicly — at £6.25 per share — citing the board's 'unwillingness to engage meaningfully' as its reason for going directly to shareholders. Castlelake argues the proposal represents compelling value, carrying a premium of 59% over EasyJet's share price on 28 May and 35% above the pre-Iranian conflict price. To broaden its appeal, the firm says it intends to offer a partial-equity alternative, allowing existing shareholders to remain invested subject to a maximum participation limit and restrictions on transferability — a structure designed to soften resistance from long-term institutional holders. The public disclosure is a classic escalation tactic in contested takeover situations: by making the offer terms visible to the shareholder base, the bidder bypasses a resistant board and applies direct pressure for engagement. The offer remains non-binding, meaning no formal agreement has been struck and EasyJet's board has not recommended it. The aviation sector context matters: Castlelake's framing references the share price recovery following the Iranian conflict, suggesting the firm believes the stock remains undervalued relative to longer-term fundamentals.
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