EasyJet Shares Rise as Board Rejects £6.50 Takeover Bid but Opens Door to Diligence

Shares in easyJet (LON: EZJ) have climbed nearly 5% on Thursday, hitting an intraday high of 572p, after the budget airline’s board rejected a fourth takeover proposal from US private equity firm Castlelake, L.P., while simultaneously granting the suitor limited access to commercial information — a move the market appears to be reading as a potential stepping stone to a higher offer.

The stock is currently trading around 566p, up approximately 26p on the day. The stock has rallied over 58% in the past three months, from around 359p in late March.

The Fourth Proposal

Castlelake’s latest indicative and conditional proposal valued easyJet at £6.50 per share in cash — inclusive of a partial alternative for shareholders to receive unlisted, non-transferable, non-voting shares in a new entity. The proposed acquisition vehicle would be 49% owned by Castlelake and co-investors including Brookfield Asset Management, with the remaining 51% held by EU nationals Peter Bellew and Mark Breen, to satisfy regulatory ownership requirements.

WELCOME BONUS - Free Share Bundle When You Invest £50! Get up to £500 cashback for investing with IG.

Invest in 15,000+ shares and ETFs. Open an account now, invest at least £50, and you’ll get a free share bundle worth between £40 and £200. T&Cs apply.

5.0

Open Account Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

Board Rejects But Grants Diligence Access

Despite unanimously rejecting the offer as “substantially undervaluing” the company, easyJet’s board agreed to provide limited diligence access, stating this might produce “a more attractive proposal.” The Takeover Panel has consented to a nine-day extension of the Put Up or Shut Up (PUSU) deadline, now set for 5 July 2026.

The board reiterated its confidence in easyJet’s strategy, pointing to its investment-grade balance sheet, net cash position, and a medium-term target of delivering more than £1 billion in profit before tax.

Shareholders have been advised to take no action at this time.