EasyJet rejects fourth takeover offer
EasyJet has rejected a fourth takeover offer worth £4.93bn from Castlelake.
The low-cost Luton-based airline said the US investment firm's bid was worth £6.50 a share, compared with the previous offers of £5.60, £6 and £6.25 a share.
A spokesperson said it was giving Castlelake until 17:00 BST on 5 July to make a firm offer or walk away.
"Having carefully reviewed it with its advisers, the board of EasyJet continues to regard the fourth proposal as substantially undervaluing the company and its prospects and continuing to give rise to significant questions of deliverability," said EasyJet.
EasyJet said the takeover interest came at a time when its share price had been pushed down by concerns about the consequences of the Iran war.
The FTSE 250 firm's shares had dropped by about 30% over the past year, before news of Castlelake's interest.
EasyJet said it remained "concerned" about Castlelake's ownership structure and ability to deliver any offer, adding the investor would need to provide "satisfactory assurances and commitments" on those issues.
Castlelake has assets under management worth $36bn (£27.3bn).
Under the deal, EasyJet would be 49% owned by Castlelake and co-investors including Brookfield Asset Management, and 51% owned by individual European Union investors.
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EasyJet has rejected a fourth takeover proposal from Castlelake, a US-based investment firm with $36bn in assets under management. The bid values the airline at £4.93bn, equivalent to £6.50 per share—an increase from three previous offers at £5.60, £6, and £6.25 per share. EasyJet's board believes the offer undervalues the company and the airline has set a deadline of 5 July 17:00 BST for Castlelake to submit a binding offer or end negotiations. The airline has flagged concerns about Castlelake's ownership structure and its ability to complete such a transaction, requesting satisfactory assurances on both points. Under the proposed structure, Castlelake and partners including Brookfield Asset Management would own 49% of EasyJet, with individual EU investors holding the remaining 51%.
Read the full story at BBC ↗
EasyJet has rejected a fourth takeover offer worth £4.93bn from Castlelake.
The low-cost Luton-based airline said the US investment firm's bid was worth £6.50 a share, compared with the previous offers of £5.60, £6 and £6.25 a share.
A spokesperson said it was giving Castlelake until 17:00 BST on 5 July to make a firm offer or walk away.
"Having carefully reviewed it with its advisers, the board of EasyJet continues to regard the fourth proposal as substantially undervaluing the company and its prospects and continuing to give rise to significant questions of deliverability," said EasyJet.
EasyJet said the takeover interest came at a time when its share price had been pushed down by concerns about the consequences of the Iran war.
The FTSE 250 firm's shares had dropped by about 30% over the past year, before news of Castlelake's interest.
EasyJet said it remained "concerned" about Castlelake's ownership structure and ability to deliver any offer, adding the investor would need to provide "satisfactory assurances and commitments" on those issues.
Castlelake has assets under management worth $36bn (£27.3bn).
Under the deal, EasyJet would be 49% owned by Castlelake and co-investors including Brookfield Asset Management, and 51% owned by individual European Union investors.
Do you have a story suggestion for Beds, Herts or Bucks? Contact us below.
Read the full story at BBC ↗
EasyJet has rejected a fourth takeover offer from Castlelake worth £4.93bn (£6.50 per share) The previous three offers were valued at £5.60, £6, and £6.25 per share EasyJet's board has given Castlelake until 17:00 BST on 5 July to make a firm offer or withdraw EasyJet's board regards the fourth proposal as substantially undervaluing the company and its prospects The board has significant concerns about the deliverability of Castlelake's offer EasyJet is concerned about Castlelake's ownership structure and ability to deliver Castlelake has $36bn in assets under management Under the proposed deal, Castlelake and co-investors including Brookfield Asset Management would own 49% of EasyJet, with 51% owned by individual EU investors EasyJet's share price has dropped roughly 30% over the past year The takeover interest comes during a period when share prices have been affected by concerns about consequences of the Iran war
Read the full story at BBC ↗
- EasyJet has rejected a fourth takeover bid from US investment firm Castlelake, valued at £4.93bn (£6.50 per share)
- The airline's board views the offer as substantially undervaluing the company and has given Castlelake until 5 July to make a firm offer or withdraw
- EasyJet remains concerned about Castlelake's ownership structure and ability to deliver, citing questions about deliverability
- The proposed deal would see Castlelake and co-investors (including Brookfield Asset Management) own 49% of EasyJet, with 51% held by individual EU investors