EasyJet rebuffs fourth takeover proposal from US firm

EasyJet has rejected a fourth takeover proposal from US investment firm Castlelake but will share some commercial information in a bid to encourage a higher offer.

The latest proposal was for £6.50 per share, up from the third bid of £6.25 revealed on Monday (June 22).

EasyJet said in a statement: “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.

“However, 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.”

Castlelake told easyJet that the bidding vehicle would be owned 49% by Castlelake and certain co-investors including Brookfield Asset Management Ltd. and 51% by EU nationals including Peter Bellew and Mark Breen.

The ‘put up or shut up’ deadline has been extended by nine days to July 5 to “facilitate limited diligence access and allow Castlelake to work on a further increased proposal and to address the Board’s deliverability concerns”.  

More: EasyJet rejects ‘highly opportunistic’ £4.7bn takeover bid by US firm