EasyJet has now rejected a fourth takeover approach of £6.50 a share from US-based investment firm Castlelake, despite the offer being an increase from previous bids.
EasyJet's board unanimously rejected Castlelake's latest £6.50-per-share offer as substantially undervaluing the company, but simultaneously suggested that granting the bidder limited access to commercial data might produce a more attractive proposal.
Therefore, Castlelake will likely need to significantly increase its offer after further due diligence or withdraw its bid, as EasyJet's board and shareholders are aligned on demanding a higher price.
Why Shareholders Are Holding Out
EasyJet shareholders demand a higher price, driving board rejections, according to Ft. The collective demand underscores a firm belief in the company's intrinsic value. The board's strategy is clear: reject increased bids while opening the door for deeper due diligence. The £6.50 rejection, coupled with data access, implies EasyJet's leadership believes the airline's intrinsic value, especially its commercial data, is significantly underestimated, forcing Castlelake to recognize it.
A Series of Rejected Offers
Castlelake's pursuit of EasyJet has seen four rejected offers:
- Early 2026: Castlelake initiates a takeover approach for EasyJet at an undisclosed initial offer, according to market reports.
- March 2026: Castlelake submits a formal offer of £6.25 per share for EasyJet, which the board rejects.
- May 2026: A third, increased offer from Castlelake is made, but EasyJet's board again deems it insufficient.
- June 25, 2026: Castlelake tables a fourth proposal at £6.50 per share, unanimously rejected by EasyJet's board as 'substantially undervaluing the company,' according to RTE Ie.
- June 25, 2026: EasyJet's board simultaneously offers limited access to commercial data to Castlelake, contingent on a more attractive proposal.
A significant valuation gap that Castlelake has yet to bridge is signaled by the consistent rejection of incrementally higher bids, despite the board's willingness to engage with data. Small bumps are insufficient for EasyJet's perceived intrinsic value.
EasyJet's Conditional Openness
EasyJet's board, despite unanimously rejecting the £6.50-per-share offer, stated that granting Castlelake limited access to commercial data might produce a more attractive proposal, according to RTE Ie. The door for a deal remains open, contingent on a more compelling financial proposal. The strategic move aims to force a much higher valuation, confirming EasyJet's leadership believes its intrinsic value, particularly its commercial data, is underestimated. By offering data access, EasyJet is effectively challenging Castlelake to justify a significantly higher bid based on a deeper understanding of the airline's underlying assets and future potential.
The July 5 Deadline
Castlelake faces a July 5 deadline to table a firm offer under UK takeover rules, according to RTE Ie. The July 5 deadline provides a crucial, but limited, window for Castlelake to conduct due diligence on EasyJet's commercial data and significantly sweeten its offer. The outcome will determine if the private equity firm meets EasyJet's valuation expectations or withdraws by July 5, 2026.
