EasyJet Board Rejects Third Offer in Hostile Takeover Bid

‍DALLAS — U.S. private equity and investment firm Castlelake has made a £4.74 billion (US $6.3 billion) hostile takeover bid for European budget carrier easyJet (U2). The airline's board has unanimously rejected three separate proposals from Castlelake, prompting the U.S. firm to appeal directly to easyJet's shareholders.

The latest and final all-cash offer for the company is 625 pence (US$8.25) per share, which, according to the Wall Street Journal, Castlelake has noted is a significant premium to recent trading prices. Previous bids offered 560p and 600p per share.

easyJet's board rejected the offer, stating it is "highly opportunistic" and that Castlelake is attempting to acquire the airline "on the cheap" by taking advantage of a share price currently depressed by the Middle East conflict and rising jet fuel costs.

Due to European Union regulations requiring airlines to be majority-owned by EU citizens, Castlelake plans to partner with European investors and executives—including former easyJet COO Peter Bellew—to structure a majority-EU-controlled holding company.

Under the U.K. City takeover rules, Castlelake has a "put-up or shut-up" deadline of 5 PM on Friday, June 26, 2026. By this time, the firm must either make a formal, firm offer or walk away for six months.

“Castlelake expected that the third proposal would elicit prompt engagement from the easyJet board,” the company said. “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 on the third proposal to the easyJet board.”

Castlelake is a Minneapolis-based global alternative investment firm founded in 2005 that specializes in asset-based private credit and investments across aviation, specialty finance, real assets, and other asset-backed markets, managing approximately $38 billion in assets. The firm is particularly known for its large aviation finance platform and aircraft leasing and lending activities.

According to the BBC, Castlelake already owns a stake of about 2.14% in U2 through the funds it manages 

Castlelake previously bailed out collapsed Scandinavian Airlines (SAS) and then sold on its shares to Air France-KLM.

The Irish Times reports that the company has partnered with Peter Bellew, a former chief operating officer at Riyadh Air (RX), U2 and Ryanair (FR), and the former chief executive of Malaysia Airlines (MH). Bellew currently runs Dooks Capital, a seed investment and advisory firm focused on AI in aviation, which he founded last September and operates out of Saudi Arabia.

Also involved is Mark Breen, chief executive of Dublin-based Oneiros Aerospace, who has worked for Oman Air (WY).

“The third proposal includes these EU national partners investing and participating in the proposed acquisition of the company through their ownership and control of an EU company,” said Castlelake.

“This EU Partner will hold a controlling shareholding in the overall structure. The EU Partner will at all times be owned and controlled by EU nationals.

“This proposed structure is consistent with structures adopted by a number of other European airlines that are subject to the same EU ownership rules as the company. Castlelake is confident that this is a clear, deliverable solution to ensure compliance with all applicable regulatory requirements.”

"Castlelake's ambition is to support EasyJet as a stronger, more resilient European airline under European control, respecting EasyJet's valuable airline assets and continuing to sustain its network."

A Reuters review of the company showed that before news of takeover interest emerged, EasyJet's shares had lost about a fifth of their value since the start of the year.

The airline’s share price has surged by 36 percent over the last month amid takeover speculation. On Monday morning, the stock gained 2 percent to 515p.

EasyJet is headquartered in Luton, UK, and employs more than 16,000 people. It is one of Europe’s three big low-cost airlines, behind Ryanair and Wizz Air. In 2025, it carried more than 90 million passengers. It operates across 38 countries on more than 1,200 routes.