Carrier EasyJet rejects new Castlelake takeover bid

Budget airline EasyJet has rejected a higher £4.93 billion approach from Castlelake.

The low-cost carrier has turned down a fourth approach worth £6.50 a share.

However, the operator has extended the offer deadline to allow its US suitor time to come up with a “more attractive proposal”.

The update comes after EasyJet turned down a £4.74 billion takeover approach earlier this week, which bosses said was an attempt to buy it “on the cheap”.

A spokesperson said: “The board continues to regard the fourth proposal as substantially undervaluing the company and its prospects and continuing to give rise to significant questions of deliverability.

“However, the board believes giving Castlelake access to limited commercial information, as Castlelake sought in the letter which contained the fourth proposal, might produce a more attractive proposal.”

EasyJet – which previously unveiled a 130-job Newcastle International Airport base –  added it “continues to be concerned about the ownership structure and deliverability of any offer from Castlelake”.

Castlelake previously bailed out collapsed Scandinavian Airlines before selling its shares to Air France-KLM.

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