EasyJet rejects fourth takeover offer

EasyJet has rejected a fourth takeover offer worth £4.93bn from Castlelake.

The low-cost Luton-based airline said the US investment firm's bid was worth £6.50 a share, compared with the previous offers of £5.60, £6 and £6.25 a share.

A spokesperson said it was giving Castlelake until 17:00 BST on 5 July to make a firm offer or walk away.

"Having carefully reviewed it with its advisers, the board of EasyJet continues to regard the fourth proposal as substantially undervaluing the company and its prospects and continuing to give rise to significant questions of deliverability," said EasyJet.

EasyJet said the takeover interest came at a time when its share price had been pushed down by concerns about the consequences of the Iran war.

The FTSE 250 firm's shares had dropped by about 30% over the past year, before news of Castlelake's interest.

EasyJet said it remained "concerned" about Castlelake's ownership structure and ability to deliver any offer, adding the investor would need to provide "satisfactory assurances and commitments" on those issues.

Castlelake has assets under management worth $36bn (£27.3bn).

Under the deal, EasyJet would be 49% owned by Castlelake and co-investors including Brookfield Asset Management, and 51% owned by individual European Union investors.

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