EasyJet Brings Castlelake, Apollo Bids in Line as Takeover Decision Looms
Takeover Battle Intensifies for EasyJet
Aug 3 (Reuters) - EasyJet on Monday extended the deadline for suitor Castlelake to decide whether to make a firm takeover offer, bringing it into line with the deadline facing Apollo as the bidding war for the budget carrier enters a decisive week.
Key Developments in the Takeover Process
Here are some details:
Deadline Extensions and Regulatory Oversight
• The UK Takeover Panel consented to an extension of Castlelake's "put up or shut up" deadline to August 7 from August 3, matching Apollo's existing deadline.
Due Diligence and Bid Proposals
• EasyJet said it has been providing diligence access to both Apollo and Castlelake since the last proposal was made.
• EasyJet backed a £5.7 billion ($7.68 billion) takeover bid tabled by Apollo Global Management in July, which trumped an earlier £5.5 billion bid by Castlelake.
Unresolved Issues and Market Uncertainty
Ownership Structures and Investor Concerns
• The bidding war for easyJet possibly heads into its final stretch this week, with unresolved questions over ownership structures and investor exit options clouding the path to a deal.
Financial Performance Amid Geopolitical Tensions
• The budget carrier's profit plummeted 70% in the third quarter, it reported late in July, as the Iran war led to volatile fuel prices and made travellers wary, though the airline indicated clearer skies heading into peak summer.
Additional Information
($1 = 0.7422 pounds)
(Reporting by Yamini Kalia in Bengaluru; Editing by Mrigank Dhaniwala and Subhranshu Sahu)
