A third takeover approach from US investment firm Castlelake has been rebuffed by easyJet.

In a statement to investors, the low-cost carrier described the proposal as “highly opportunistic” and insufficiently reflective of the airline’s long-term value.
The latest offer, submitted on 20 June, values the UK-based low-cost carrier at around £4.7bn, or £6.25 per share, representing a significant premium to the company’s pre-bid trading price. However, the airline’s board has unanimously rejected the bid, arguing that the VC firm is trying to buy the airline ‘on the cheap’ and that it fails to capture easyJet’s medium-term earnings potential and strong balance sheet position.

In a notable escalation, Castlelake has taken the unusual step of making its proposal public after three rejected approaches, seeking to engage directly with shareholders ahead of a regulatory deadline on 26 June. The firm said the move would allow investors to assess the merits of the transaction and apply pressure on the board to enter discussions.

However, the airline maintains that the timing of the offer is a key concern. Management argues the bid has been launched during a period of short-term volatility in the aviation sector, linked to geopolitical tensions and fluctuating fuel costs, which have weighed on the airline’s share price. As a result, the company believes the proposal effectively seeks to capitalise on temporarily depressed market conditions.

The board has also raised reservations about the valuation approach, stating that Castlelake’s analysis relies heavily on near-term earnings and market sentiment rather than the carrier’s structural growth drivers. These include fleet modernisation, expansion of its holidays division and ongoing efficiency programmes, which easyJet expects will underpin future profitability.

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Beyond valuation, easyJet has questioned the deliverability of the transaction itself. The proposed acquisition structure (which has been designed to comply with European ownership rules requiring majority EU control) would see Castlelake hold a minority stake alongside European investors. The airline described this framework as “opaque” and highlighted concerns over leverage levels and conditionality attached to the deal.

Market reaction has been cautious. While easyJet shares rose following disclosure of the bid and are up significantly since Castlelake first indicated interest in late May, they remain below the offer price, suggesting investor uncertainty over the likelihood of a successful transaction.
The takeover attempt comes amid broader consolidation speculation in the European aviation sector, although regulatory barriers continue to limit strategic mergers between major carriers.

Castlelake itself has invested $20bn+ in aviation assets, mainly aircraft and financing rather than airlines, although it did enter acquisition talks with Spirit prior to that airline’s collapse earlier this year.