EasyJet backs a higher Apollo takeover bid over Castlelake
US private equity firm Apollo Global Management has topped rival bidder Castlelake with a £5.7bn ($7.6bn) proposal for EasyJet, prompting the UK budget carrier’s board to switch its support to the new offer. Apollo’s cash proposal values EasyJet at £7.15 a share, about 3.6% above Castlelake’s £6.90 bid, which the board had agreed in principle to support only days earlier. EasyJet said it is “no longer minded to recommend” the Castlelake proposal.
Neither approach is yet a firm offer under UK takeover rules. Apollo has until August 7 to make a binding bid and Castlelake until August 3, and EasyJet cautioned there is “no certainty” a firm offer will follow. The competing approaches leave room for Castlelake to raise its price, keeping one of Europe’s largest low-cost airlines in play.