London, June 23, 2026, 16:15 BST
easyJet shares gained 1.9% to around 527 pence in late London trade Tuesday, while the FTSE 250 fell 1.2%. Investors are still watching to see if Castlelake will increase its offer. easyJet is trading about 16% under the 625 pence a share price that the US investment firm proposed, with the gap showing some investors doubt a deal will happen at those terms.
Castlelake faces a key deadline at 17:00 BST on Friday under UK takeover rules. The “put up or shut up” rule means Castlelake has to make a firm offer for easyJet or walk away unless it gets more time from the Takeover Panel. So far, it has put forward three non-binding offers—560p, 600p, and 625p a share. easyJet’s board turned them all down. London South East
Major easyJet shareholders are pushing for an offer of no less than 700 pence, according to the Financial Times, which cited investors and others close to the discussions. At that price, easyJet would be valued near £5.3 billion—about £600 million more than Castlelake’s most recent bid. Both easyJet and Castlelake declined to comment to Reuters.
The board called the 625-pence offer “highly opportunistic” and said it was an effort to take over the airline “on the cheap”. The board said Castlelake put too much weight on a share price hit by the Middle East conflict and short-term earnings. It said the bid ignored easyJet’s net-cash balance sheet, ongoing fleet renewal, and a medium-term goal of more than £1 billion a year in pretax profit. The airline also raised issues with the proposal’s leverage, conditions and ownership.
Castlelake says it would use a mix of committed equity and debt for the bid, and Goldman Sachs is confident on lining up the financing. The bid vehicle would be 49% owned by Castlelake, with 51% held by EU nationals and other investors, aimed at keeping easyJet’s EU flight licences. “There will be increased pressure on the board this week,” Goodbody analyst Dudley Shanley said. Shanley said the partial-equity setup is likely directed at founder Stelios Haji-Ioannou and his family, who own about 15%. Reuters
easyJet reported a bigger first-half pretax loss at £552 million, up from £394 million. Revenue climbed 12% to £3.95 billion. Passenger numbers increased 6% to 42 million. Net cash came in at £434 million. easyJet holidays posted headline pretax profit of £61 million.
Analysts point to easyJet’s assets as a key draw for buyers who see value not yet priced in. Barclays analyst Andrew Lobbenberg said this month the share price “consistently undervalues its assets,” putting the value of its fleet, airport slots and holidays arm above £11 per share. The airline still trails Ryanair, creating room for a buyer to go after higher margins and better efficiency. Reuters
Risks go both ways here. Morningstar analyst Loredana Muharremi lowered her standalone fair-value estimate to 574 pence from 670 pence, saying that a shift to late bookings makes “earnings visibility” tougher and could push easyJet to cut prices. If Castlelake walks on Friday, some takeover premium could disappear; a formal offer would still have financing and EU ownership hurdles. The spread between 527 pence and 625 pence tells the story for now. Morningstar
