EasyJet rejects a $6,3 billion takeover bid and enters into a standoff with Castlelake

British low-cost airline easyJet has rejected a £4,74 billion (approximately $6,3 billion) takeover bid from US investment firm Castlelake. Castlelake made its proposal public on Monday, increasing the pressure on the airline's board just days before the deadline for a formal offer.

Castlelake, based in Minneapolis and managing nearly $38 billion in assets, indicated that its offer would allow easyJet shareholders to directly assess the merits of the proposal before the June 26 deadline. The firm also revealed that it had already submitted two previous offers, of £5,60 and then £6 per share, on June 12 and 17 respectively, both of which were rejected by the airline's management.

The latest offer, at £6,25 per share, represents a premium of approximately 57% over easyJet's share price before Castlelake announced its interest in the company at the end of May. This takeover bid has significantly boosted the share price, which rose by as much as 5,3% on Monday, reaching its highest level in nearly a year.

Despite this positive market reaction, easyJet's board of directors immediately rejected the proposal, calling it an "opportunistic" attempt to acquire the company at an insufficient price. Management believes the offer does not reflect the company's true value or its medium-term growth prospects.

EasyJet maintains it remains focused on its strategic development, particularly in the package holidays sector, which has become a key driver of its business. However, the airline faces several challenges, including the economic fallout from the conflict involving Iran and a slowdown in bookings observed in recent months.

To address potential regulatory concerns, Castlelake indicated it is working on a partnership structure compatible with European rules governing airline ownership. The investment fund is also considering an alternative that would allow shareholders to retain a partial stake in the group.

With just days to go before the deadline for submitting a formal offer, the standoff between Castlelake and easyJet's management appears to be well underway. Investors will be closely watching the board's upcoming decisions as pressure mounts around what could be one of the biggest potential deals in the European airline industry this year.