UK low-cost carrier easyJet (U2/EZY) has rejected multiple bids from US based investment group Castlelake following the deceleration of an offer period.
The latest offer totalled £4.7bn which prompted the easyJet board to reject the bids and to accuse Castlelake of trying to “buy it on the cheap” however the US based group made the offer public to allow shareholders time to assess.
Castlelake has until this Friday to make a firm offer that could be put to shareholders.
Under the Castlelake offer, shareholders would receive a premium price of £6.25 per share, which is about 24% higher than the closing price last week.
In a statement, Castlelake said: “Following the rejection of three proposals by the EasyJet Board, and given its unwillingness to engage meaningfully, Castlelake is announcing this Third Proposal to enable EasyJet shareholders to consider its merits,”
They added: “Castlelake’s ambition is to support EasyJet as a stronger, more resilient European airline under European control, respecting EasyJet’s valuable airline assets and continuing to sustain its network.”
Castlelake also faces another hurdle in that under EU rules, easyJet must be majority owned by EU citizens however the investment group says it has an ownership proposal to alleviate that by partnering with two EU nationals, businessmen Peter Bellew and Mark Breen.