London, June 18, 2026, 15:14 BST
- easyJet traded close to 501 pence, slipping about 0.5%. That move tracked the FTSE 250, which dropped 0.55%.
- IAG CEO Luis Gallego said EU antitrust rules mean a possible bid for easyJet would be “very difficult.” Financial Times
- Shares are still trading roughly 26% higher than they were before news of Castlelake’s interest came out. Castlelake has until June 26 to either put in a firm bid or drop its pursuit.
easyJet shares slipped about 0.5% on Thursday, trading at 501 pence after starting at 492.6 pence, according to delayed London prices. The move was in line with the wider drop in UK mid-caps, and there was little sign that takeover chatter had much impact.
Share price is the key figure. easyJet is at about 501 pence, up about 26% from its May 29 close of 398 pence, and trading around 24% above the 403.23-pence floor Castlelake said its offer would beat. Castlelake hasn’t put in a formal approach to the board. It has until June 26 to make a bid or walk away. easyJet called the move “highly opportunistic.” Reuters
The gap is a notable takeover premium, reflecting what investors see in a possible deal. By the numbers, traders are betting on a bigger Castlelake offer, a new bidder, or that easyJet does better solo. But these scenarios aren’t certain.
Gallego threw up a regulatory hurdle for any possible rival bid. The IAG boss said EU merger rules make a deal for easyJet “very difficult.” Still, he left the door slightly open to looking at the chance and called on Brussels to rethink its approach on airline competition. IAG dropped its Air Europa bid after European regulators kept pushing back. Cinco Días
Air France-KLM isn’t ruling it out. CEO Ben Smith said the airline group could be interested “perhaps” if it was approached, calling easyJet’s assets “amazing.” He made clear Air France-KLM is not actively looking at a deal. Smith also said Castlelake has not reached out to the Franco-Dutch carrier about joining a possible offer. Reuters
The reasons for interest are clear. Deutsche Bank’s Jaime Rowbotham said this month easyJet had “looked cheap” and cited its aircraft, margin potential and airport slots. Barclays’ Andrew Lobbenberg also said the market undervalued its fleet, slots, and holidays arm. Reuters
Form 8.3 filings kept coming in on Thursday from Barclays, Wellington Management, L&G and Citadel. The filings are required from any investor with a holding of 1% or more during an offer period. By themselves, these disclosures don’t mean another bidder is coming in.
But the downside story hasn’t gone away. easyJet posted a £552 million loss for the first half back in May. The airline said the view for the rest of the year was still cloudy, blaming high fuel costs and later bookings for weaker guidance. Duncan Ferris, investment writer at Freetrade, called the fuel hedge “protection, but not immunity.” A Castlelake exit or a lower-than-expected offer could cut into the takeover premium while margins are still squeezed. Reuters
June 26 is the next hard catalyst here. The stock could stay jumpy on any credible bidder headlines before then, or if a buyer manages to close the valuation gap and deal with Europe’s ownership and competition issues.
