EasyJet rejects fourth Castlelake bid, shares rally on London market

By Julia Schmitt, Sector & Peer Group desk. Reviewed prior to publication on 2026-06-26, 09:51.

EasyJet (GB00B7KR2P84) has rejected a fourth takeover approach from US investment firm Castlelake while its London-listed shares rallied markedly, as reported by several market sources including the London Stock Exchange and BBC.BBC coverage of the Castlelake bid

What the latest bid entails

The latest proposal from Castlelake values EasyJet at 650 pence per share in cash, implying an equity value of roughly £4.93 billion for the FTSE 250 airline, according to Alliance News and BBC.Alliance News summary via MarketScreener The bid also included an option for shareholders to receive non-voting securities in a structure linked to Castlelake, per Investing.com.Investing.com report on the bid details

This marks Castlelake’s fourth approach after earlier indicative offers at 560 pence, 600 pence and 625 pence per share, all of which were turned down by EasyJet’s board as not being in shareholders’ best interests, according to UK media reports.BBC explanation of prior bids

Board response and extended deadline

After reviewing the latest proposal with its advisers, EasyJet’s board concluded that the fourth offer “substantially undervalues the company and its prospects” and raises doubts about feasibility, as quoted in statements carried by BBC and Alliance News.Alliance News article on board reaction The airline also highlighted ongoing concerns about Castlelake’s proposed ownership structure and its ability to deliver a compliant transaction under EU aviation rules, where control by EU nationals is required.Yahoo Finance analysis of ownership structure

At the same time, EasyJet requested and obtained a nine-day extension to the “put up or shut up” deadline from the UK Panel on Takeovers and Mergers, pushing the cut-off to July 5 at 17:00 BST for Castlelake to announce a firm offer or walk away for at least six months.BBC reporting on the extended deadline

The sector backdrop this week

EasyJet’s move comes against a robust backdrop for European airlines, with peers such as Ryanair and Wizz Air also benefiting from resilient summer demand and capacity growth on intra-European routes, according to recent sector commentary from Reuters.Reuters sector report on European airlines The FTSE 250 index, where EasyJet is a constituent, saw fresh inflows into travel and leisure names as investors position for peak-season profitability.

Bloomberg’s Stock Movers podcast noted that EasyJet shares advanced by as much as 5.9 percent, touching a one-year high on the London Stock Exchange after the rejection, putting the airline ahead of several travel peers on weekly performance.Bloomberg Stock Movers episode featuring EasyJet

The business behind the stock

EasyJet operates as a leading low-cost carrier focused on short-haul routes across the UK and continental Europe, with its main base at London Luton Airport and significant operations at Gatwick and other European hubs, as described on its corporate site.EasyJet investor relations overview The airline’s core offering is point-to-point leisure and business travel using a single-fleet strategy centered on Airbus A320-family aircraft to keep unit costs competitive.

Where the stock trades today

The EasyJet shares (GB00B7KR2P84) trade on the London Stock Exchange under the ticker EZJ; on the latest available data the shares changed hands at around 574 pence in London trade, with pricing quoted in pounds sterling.

Disclaimer: This article is for informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. All data are based on sources believed to be reliable but cannot be guaranteed.