EasyJet (OTC:ESYJY) gave U.S. investment firms Apollo Global Management Inc. (NYSE:APO) and Castlelake until Friday to submit firm takeover offers or walk away, pushing a $7.6 billion contest for one of Europe’s largest budget airlines toward a decision.
Bidders Face Friday Deadline for Offers
According to a Reuters report on Monday, the U.K. Takeover Panel extended Castlelake’s "put up or shut up" deadline from Monday to 5 p.m. London time on Aug. 7, matching Apollo’s cutoff. EasyJet said it continues giving both bidders access to due-diligence information.
Apollo moved ahead in July with a £5.7 billion, or about $7.68 billion, proposal worth £7.15 per share. The offer topped Castlelake’s £5.5 billion bid of £6.90 per share by 3.6% and carried an 81% premium to EasyJet’s May 28 closing price. EasyJet’s board withdrew support for Castlelake and backed Apollo, saying the higher proposal delivered a "superior outcome" for shareholders.
The bidding war follows Castlelake’s earlier agreement in principle after several rejected approaches. Castlelake has not said whether it will raise its offer, while Apollo plans to retain the EasyJet brand through its licensing arrangement with founder Stelios Haji-Ioannou’s easyGroup.
Benzinga has reached out to easyJet for comment on the reported deadline extension but did not receive an immediate response.
Valuable Assets Draw Competing US Suitors
Investors are pursuing EasyJet for its network, fleet and scarce airport slots. The airline operates more than 350 aircraft and holds positions at major European airports that analysts say would be difficult to replicate.
Regulation could still complicate either transaction. European Union rules require airlines operating within the bloc to remain majority EU-owned and controlled. Reuters notes that regulators are reviewing those rules to prevent foreign buyers from exercising effective control through proxy structures. Castlelake has proposed placing 51% ownership with EU-national investors, while Apollo has not publicly detailed its compliance plan.
War Pressures Airline Profits and Demand
The takeover battle also comes as the Iran war strains airline finances. EasyJet’s third-quarter profit fell 70% as volatile fuel prices and weaker traveler confidence weighed on results. IATA expects global airline profit to fall from $45 billion in 2025 to $23 billion this year, with jet-fuel costs rising nearly 40% to $350 billion.
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