LONDON, July 8, 2026, 14:02 BST
- London markets were trading at the time. easyJet LON:EZJ sat at 610.40p as of 13:56 BST, which is 79.6p under Castlelake’s 690p offer.
- The spread works out to around £603 million across 758.01 million ordinary shares, which is a bigger gap than the 40p jump between Castlelake’s fourth and fifth bids.
- Regulatory and control risk is still in focus. Castlelake is American, but EU rules say airlines must be mostly owned and controlled by Europeans.
easyJet LON:EZJ shares were at 610.40p at 13:56 BST on Wednesday, sitting 11.5% under Castlelake’s 690p cash offer. Shares were up 2.1% on the day, valuing the company at £4.62 billion. Google Finance showed 758.01 million shares outstanding.
The spread is what traders are watching. The board says it will back the deal if Castlelake firms up by Aug. 3, but the shares still reflect about £603 million in equity value over the offer. Shares at 610.40p, deal at 690p, that’s a 13.0% gap.
| Castlelake approach | Cash price | Status | Change |
|---|---|---|---|
| First | 560p | Rejected | — |
| Second | 600p | Rejected | +40p |
| Third | 625p | Rejected; easyJet said Castlelake wanted to buy at a low price | +25p |
| Fourth | 650p | Rejected | +25p |
| Fifth, proposed July 4 | 690p | Board said it would likely recommend if the offer becomes firm | +40p |
The fifth offer is 6.2% higher than the rejected 650p bid. But the 79.6p spread in the market is nearly double that gain, showing traders still see plenty of execution risk even after the higher price.
In a July 5 statement, the company said the proposal isn’t a firm Rule 2.7 offer and there’s “no certainty” a formal bid will come. Castlelake will use its “best endeavours” to get the needed approvals, but told shareholders to “take no action.”
The regulatory question is significant. According to a BBC report, Castlelake holds about 2.14% of easyJet, and EU law says the airline must be at least 51% owned by Europeans. Reuters said Castlelake’s earlier setup had it with 49% of the bid vehicle, while EU nationals Peter Bellew and Mark Breen held the rest.
“It’s a difficult situation,” said Nick Longhurst, portfolio manager for Europe at Marathon Asset Management, in comments to Reuters. Airline analyst John Strickland called the EU ownership and control rules “complex” and said they aren’t fully clear. Reuters
Conroy Gaynor, Bloomberg Intelligence, said questions remain on ownership and regulatory signoff. He said 690p would price in almost 100% probability the deal happens. “We certainly are not there.” Fortune
City opinion divided on price. Kathleen Brooks at XTB called it a “massive for sale sign” for UK corporates. Andrew Lobbenberg at Barclays said the offer is “offering good value to shareholders” and expects Castlelake to keep the holidays unit and only steady airline growth. The Guardian
The stand-alone case is the flip side. Guardian’s Nils Pratley pointed to a 46% jump in pre-tax profits to £665 million for the two years to September 2025, more than £1 billion targeted, the package holidays arm topping its £250 million profit target early, 208 owned aircraft, and tight airport slots. He wrote that easyJet is “not a crisis-ridden business.” The Guardian
| Failed-deal reference | Price used | Implied deal chance | Read-through |
|---|---|---|---|
| May 29 close using Reuters’ 73% premium math | about 399p | about 73% | Market sees odds a bit better than 50/50 |
| Friday’s close ahead of headline terms | 558p | about 40% | Still a lot of short-term risk priced in |
The two spread situations explain why shares haven’t reached the offer. The first takes the undisturbed May 29 price as implied by Reuters’ 73% premium. The second uses the Friday close the BBC cited, which already baked in bid chatter.
The FT’s Lex column called the potential sale “surprisingly good for its rivals”. That matters for easyJet holders, too. A private buyer might value planes, slots and holiday assets more than the public market did before Castlelake stepped in. Financial Times
Castlelake has a deadline of 5 p.m. BST on Aug. 3 to either make a formal offer or pull the bid. The official statement also said that if easyJet declares a new dividend or other payout before that date, Castlelake may reduce its fifth proposal by the same amount.
