Castlelake's Third Takeover Offer Rejected by Easyjet: Shareholders Urged to Provide Feedback
Castlelake, a private equity firm, has made a third takeover offer to Easyjet, a budget airline, which has been rejected by the airline. The latest bid was for £6.25 per share, higher than Easyjet's share value at the time. Castlelake has criticized Easyjet for not engaging meaningfully and is now urging shareholders to consider the proposal and provide their views directly to the airline. The offer includes a significant premium on Easyjet's share price when Castlelake first made a bid and on the airline's interim trading update in April. Easyjet had reported a forecasted pre-tax loss due to the Middle East conflict affecting travel routes and jet fuel supply.
Easyjet's CEO acknowledged the financial challenges faced by the airline, attributing them to the Middle East conflict and competitive market conditions. Castlelake is seeking feedback from investors on its proposal before a deadline of 26 June, by which the firm must decide whether to make a formal offer or withdraw. Easyjet had previously criticized Castlelake's timing as opportunistic, taking advantage of the airline's low share price amid the travel disruptions caused by the conflict in the Middle East. Despite a temporary decline in share value, Easyjet's shares have since recovered, stabilizing at a two percent year-on-year drop.