THE GIST Our analysts just identified a stock with the potential to be the next Nvidia.
Tell us how you invest and we’ll show you why it’s our #1 pick
Tap here. easyJet rejected a £4.74 billion takeover bid from private equity firm Castlelake, turning a quiet pursuit into a public fight over whether one of Europe’s biggest budget airlines is being lowballed right before its turnaround starts showing up in the numbers. WHAT HAPPENED easyJet’s board unanimously rejected an unsolicited cash offer from Minneapolis-based Castlelake worth 625 pence per share, saying the bid undervalues the airline and its long-term prospects. The offer was Castlelake’s third proposal in less than a week.
The firm first came in at 560 pence per share on June 16, then raised that to 600 pence over the weekend, before returning Sunday night with the 625 pence bid. Investors immediately started pricing in a takeover premium. easyJet’s London-listed shares climbed more than 4% in morning trading to around 525 pence as traders weighed whether Castlelake might return with a higher offer or take the fight directly to shareholders. Castlelake already owns a 2.14% stake in easyJet through managed funds, giving it a small foothold.