EasyJet board backs Castlelake £5bn takeover

The board of British budget airline EasyJet has agreed in principle to a takeover proposal from U.S. private equity firm Castlelake, valuing the carrier at over £5 billion. The announcement on Sunday, July 5, 2026, marks a significant shift after EasyJet rejected four previous bids from Castlelake, which it had criticized as opportunistic.

The latest proposal offers £6.90 per share, a price the EasyJet board said it would be "minded to recommend" to shareholders if a firm offer is made. Castlelake now has until 5 p.m. BST on August 3 to announce a firm intention to make an offer or walk away, following an extension from an initial deadline of Sunday. The deal would require regulatory approvals and a shareholder vote to proceed.

EasyJet, founded in the 1990s by entrepreneur Stelios Haji-Ioannou, had rebuffed earlier offers of £5.60, £6.00, £6.25, and £6.50 per share. The airline had argued those bids substantially undervalued the business, especially as its share price had been depressed by external factors. The company's shares closed at £5.58 on Friday, July 3rd, and have not traded above £6.90 since early 2022. Some major shareholders had reportedly been pushing for a price...