EasyJet Rejects Castlelake’s $6.3B Offer, Demands Higher Acquisition Bid
EasyJet Seeks Higher Valuation Amid Castlelake Takeover Bid
Shareholders Demand Increased Offer
June 22 (Reuters) - EasyJet and its investors are holding out for at least £600 million ($794.46 million) more from U.S. suitor Castlelake, the Financial Times reported on Monday, citing leading shareholders and people with knowledge of the talks.
Details of the Rejected Bid
The airline rejected the U.S. investment firm's $6.3 billion bid, saying it undervalued the business. Castlelake made the offer public earlier in the day.
Investor Expectations
"I think they'll engage if the price is at seven plus," the FT reported, citing a large unnamed investor, referring to an offer of at least £7 a share that would value easyJet at about £5.3 billion.
Castlelake’s Public Statement
Castlelake said in a statement earlier on Monday that easyJet's "unwillingness to engage meaningfully" was a reason for going public with the bid, which included a partial equity alternative for investors.
Responses from Both Parties
Castlelake declined to comment on the report, while EasyJet did not immediately respond to a Reuters requests for comment.
Exchange Rate Information
($1 = 0.7552 pounds)
Reporting Credits
(Reporting by Ankita Bora in Bengaluru; additional reporting by Krisha Bhatt; editing by Sahal Muhammed and Maju Samuel)
