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Business
Jun 22, 2026
Analyzed by GPT OSS 120B

Castlelake’s £4.7bn Offer Falls Short of EasyJet’s Full Ticket Price

AI Summary
US investment firm Castlelake has gone public with a £4.7bn, 625p‑per‑share bid for easyJet, but the offer sits below the current market price and faces scepticism over its EU‑ownership structure. With the deadline looming, the airline’s board and founder Stelios Haji‑Ioannou remain unconvinced, leaving the takeover uncertain.

EasyJet's Board Faces a Public Bid from Castlelake

US investment firm Castlelake has taken its third attempt to acquire easyJet public, hoping shareholder pressure will reopen talks before the “put up or shut up” deadline at the end of the week.

Castlelake's £4.7bn Offer and Its Structural Twist

The latest proposal values the airline at £4.7bn, or 625p per share, and includes an EU‑partner structure designed to satisfy European ownership rules. The partner would be led by two EU nationals, one a former easyJet executive, holding a majority of voting rights while economic ownership remains with Castlelake and co‑investors.

Valuation Gap: 625p per Share vs Market Price

  • Offer price: 625p per share
  • Current market price: 518p (up 2% on Monday)
  • Previous high since early 2022: 625p
  • Company’s balance‑sheet assets: roughly £5bn (208 owned aircraft, landing slots)

The bid sits below the market price and well under the price needed to persuade shareholders, especially given the airline’s solid asset base.

Implications for EU Ownership Rules and Shareholder Sentiment

EasyJet’s board questions the “deliverability” of the structure, arguing it is opaque and may skirt EU rules that require majority ownership by European investors. Without the backing of founder Stelios Haji‑Ioannou, who holds a 15% stake, the proposal lacks the political weight to sway shareholders.

What’s Next for the Takeover Negotiations?

With the deadline looming, Castlelake must either improve the price or secure Stelios Haji‑Ioannou’s support. If the bid remains unchanged, easyJet is likely to reject it, leaving the airline to pursue its medium‑term target of £1bn‑plus profit through cost‑saving programmes and a recovery in post‑war demand.