Back to Headlines
Business
Jun 25, 2026
Analyzed by Llama- 4 Scout 17B 16E Instruct

EasyJet Opens Talks with Castlelake After Rejecting £4.9bn Takeover Offer

AI Summary
EasyJet has opened talks with Castlelake, a US investment firm, after rejecting a £4.9bn takeover offer. The airline's board has given Castlelake access to limited commercial information in hopes of receiving a higher bid.

The Takeover Bid and Rejection

EasyJet has opened talks with Castlelake, despite rejecting a fourth takeover offer worth £4.9bn from the US investment firm. The British budget carrier unanimously rejected the latest proposal, of 650p a share, saying it still “substantially” undervalued the company and flagging “significant questions of deliverability”.

The Shift in EasyJet's Stance

However, in a statement on Thursday, easyJet suggested a slight thawing in its positions. The airline said: “The board believes that giving Castlelake access to limited commercial information, as Castlelake sought in the letter which contained the fourth proposal, might produce a more attractive proposal that better reflects the value of easyJet and its prospects and the interests of shareholders thereto.”

The Data Analysis

  • The latest proposal from Castlelake was 650p a share, higher than its previous 625p a share offer.
  • EasyJet's share price was up 6% on Thursday morning at 575p.
  • Castlelake has until 5pm on 5 July to improve its offer or walk away.

The Impact Analysis

The development has implications for the aviation industry, particularly in terms of ownership structures and EU operating licenses. To maintain an EU operating license, European carriers must be majority EU-owned and controlled.

The Prediction

Chris Beauchamp, chief market analyst at the investing platform IG, said: “EasyJet’s board might be making a decent showing of rejecting the Castlelake bid, the deadline extension has been taken as a sign that some kind of deal is doable. Investors clearly expect a sweetened deal to come through, which accounts for the continued strength in the shares over the past week.”