easyJet rejects Castlelake’s £4.74bn takeover bid as deadline looms

easyJet has turned away Castlelake’s third takeover proposal, saying the approach was highly opportunistic at a moment when higher fuel bills and softer bookings had already put pressure on the airline. The rejection extends a fast-moving contest over one of Europe’s best-known low-cost carriers, with Castlelake now running up against a June 26 deadline to declare a firm bid or walk away.

Castlelake’s latest offer, submitted on June 20 and rejected the next day, valued easyJet at about £4.74bn, or $6.26bn, at 625p a share. That price was 59% above easyJet’s share price before Castlelake’s interest became public at the end of May, and about 24% above the level before the proposal itself was disclosed. Castlelake had already put forward two earlier, unsuccessful offers at 560p and 600p per share.

The private capital firm said it was taking the bid directly to shareholders after accusing easyJet’s board of refusing to engage meaningfully. It also set out a structure designed to comply with European airline ownership rules, including a partial equity alternative that would let easyJet investors remain in a privately held business. The bid has been backed by former Malaysia Airlines chief executive Peter Bellew, adding airline operating credibility to a deal that still faces major regulatory and execution hurdles.

easyJet had already signaled skepticism before the latest offer arrived. On June 1, the company said it had not held discussions with Castlelake and had not received any formal approach or proposal at that point. The board had also pointed to rising fuel costs linked to the Middle East conflict and warned that bookings were running below the previous year’s levels, reinforcing its view that Castlelake was pressing its case during a vulnerable phase of the aviation cycle.

The attraction is obvious. easyJet is still one of Europe’s biggest low-cost airlines, with valuable airport slots that are difficult to replace and potentially even harder to assemble from scratch. Yet the company’s ownership structure complicates any transaction: it was founded in 1995 by Stelios Haji-Ioannou, and his family remains easyJet’s largest shareholder. Castlelake already holds about 2.14% of the airline through funds it manages, but under UK takeover rules it must still either formalize its offer by 5:00pm on June 26 or retreat unless the Takeover Panel grants more time.

The fight now turns on whether Castlelake is seeing genuine strategic value in easyJet, or simply trying to buy a major European airline at a discount while sentiment, fuel costs and earnings pressure leave the shares exposed.