EasyJet agrees to rival £5.7bn takeover bid

No-frills airline EasyJet has agreed in principle to a £5.7bn takeover proposal from US firm Apollo Management, just days after accepting an offer from a rival suitor, Castlelake. The Luton-based carrier stated that Apollo's offer of £7.15 per share delivers "a superior outcome" to investors compared to Castlelake's £6.90 per share proposal, which EasyJet said it is now "no longer minded" to accept. The deal is not yet confirmed, with Apollo set a deadline of 17:00 on 7 August to make a firm bid or walk away, while Castlelake's deadline is 3 August. EasyJet, one of Europe's largest airlines employing over 19,000 people and flying around 1,200 routes, had previously accused Castlelake of trying to buy the company "on the cheap" before reaching an agreement in principle on Sunday for a £5.2bn offer. A significant regulatory hurdle for any takeover is that EU regulations require the carrier to be majority-owned by EU citizens. Castlelake had proposed partnering with two EU nationals to address this, while Apollo's offer represents an 81% increase from EasyJet's share price before takeover interest was made public.