Overview
- easyJet unanimously rejected Castlelake’s fourth non-binding offer of 650p per share on Thursday, saying the price substantially undervalues the airline and that the proposal raises material questions about how it would be delivered.
- The carrier will grant Castlelake limited commercial and financial information so the bidder can rework its approach and the UK Panel on Takeovers and Mergers has extended the formal offer deadline to 17:00 BST on July 5.
- Castlelake proposed a takeover vehicle 49% owned by itself and 51% by EU-national executives including Peter Bellew and Mark Breen to meet EU control rules, a structure easyJet says requires clearer assurances.
- The US firm has raised its unsolicited offers in stages from 560p to 600p then 625p and now 650p per share, while easyJet stresses it is profitable, has a strong balance sheet and is targeting more than £1 billion in pre-tax profit.
- If Castlelake cannot table a firm bid by the July 5 deadline it must withdraw for six months and shareholders and regulators will be the next arbiters of whether a higher, deliverable proposal emerges.