easyJet agrees to second takeover bid starting a bidding war for the low cost carrier

UK low-cost carrier (LCC) easyJet (U2/EZY) has agreed in principle to another takeover bid from US company Apollo Global Management sparking a potential bidding war between them and US investment group Castlelake.

easyJet says the new rivals offer delivers a “superior outcome” to investors in the group, which includes the airline and easyJet holidays.

The offer from Apollo sees shareholders getting £7.15 per share as opposed to the £6.90 offered by Castlelake valuing the business at £5.7bn rather than £5.2bn.

The easyJet board had previously said it would recommend the Castlelake deal if a formal offer was put to shareholders but now says it would not, and would back the Apollo offer.

In response, Castlelake said it had noted the statement and would now consider its options.

Castlelake has until the 3rd of August to make a formal offer where Apollo now has until the 7th of August to make theirs.