A Minneapolis-based investment firm is pressuring easyJet to the negotiating table by going public with a 4.7 billion pound takeover proposal, escalating a weeks-long acquisition battle that the budget airline's board has repeatedly rebuffed.
Castlelake announced Monday that it is offering 625 pence per share for easyJet, valuing the carrier at just over 4.7 billion pounds. The board rejected this bid on Sunday, marking the third consecutive no from the airline's leadership following earlier proposals at 560p and 600p.
Rather than fade away, Castlelake disclosed the offer directly to shareholders, arguing the board has refused to engage meaningfully. The firm has until 5pm on June 26 under City takeover rules to formally declare whether it will proceed, and this public disclosure is clearly designed to build pressure ahead of that deadline.
"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 and provide their views," the company said in its statement.
The investment manager, which oversees 36 billion dollars in assets, has structured the bid to clear a critical regulatory hurdle. European Union rules require that airlines remain majority-owned by regional investors, a requirement that still binds easyJet despite Britain's exit from the bloc. Castlelake has partnered with two aviation industry veterans to satisfy this constraint.
The first partner is Peter Bellew, a former chief operating officer at Riyadh Air, easyJet, and Ryanair, as well as onetime chief executive of Malaysia Airlines. Bellew runs Dooks Capital, a seed investment and advisory firm focused on aviation AI that he launched in September and operates from Saudi Arabia. The second is Mark Breen, chief executive of Dublin-based Oneiros Aerospace, who previously worked for Oman Air.
Under Castlelake's proposed structure, the EU partner company would hold controlling ownership and remain at all times owned and controlled by EU nationals. Castlelake maintains this mirrors arrangements adopted by other European airlines facing identical ownership restrictions.
easyJet's board dismissed the latest offer as opportunistic. The airline said in a statement that Castlelake is trying to buy it "on the cheap" and that the proposed ownership structure lacks transparency.
"The board believes that the third proposal represents an opportunistic attempt to acquire easyJet 'on the cheap' and that it is therefore not in the best interests of easyJet shareholders," the carrier said.
Board members also criticized the valuation methodology, noting that Castlelake's analysis relies heavily on depressed share prices influenced by Middle East conflict, short-term earnings, and analyst reports rather than long-term fundamentals. The airline maintains that easyJet's prospects are being undervalued.
Before takeover speculation began, easyJet shares had tumbled roughly 20 percent since the start of the year. The acquisition interest has reversed much of that decline, with the stock climbing 36 percent over the past month. Shares rose 2 percent to 515p on Monday morning as traders digested Castlelake's public move.
Castlelake's initial approach arrived earlier this month with a tentative 403p per share offer, implying a 3 billion pound valuation. The firm has steadily raised the price in successive bids, though easyJet has rejected each iteration without serious negotiation.
This is not Castlelake's first foray into aviation rescue and restructuring. The company previously rescued Scandinavian Airlines from bankruptcy and then sold its stake to Air France-KLM. In January, Castlelake entered talks to acquire bankrupt US carrier Spirit Airlines.
easyJet operates from its Luton headquarters and employs more than 16,000 workers globally. The airline ranks as Europe's second-largest low-cost carrier behind Ryanair, with Wizz Air in third place. The company faced a prior takeover approach from Swiss shipping giant MSC in October and rejected an advance from rival airline Wizz Air back in 2021.
Castlelake is chaired and founded by Rory O'Neill. The firm manages 36 billion dollars and has positioned itself as a player willing to move quickly in aviation deals when others see only distressed assets.
Author James Rodriguez: "Castlelake is betting that forcing this into the public eye will shake loose a shareholder rebellion that the board can no longer ignore, but easyJet's leadership has shown it would rather wait out the clock than capitulate to pressure."
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