Can Castlelake Succeed Where Others Failed?
EasyJet has a potential suitor, but the airline is not impressed. On Friday, Minneapolis-based investment firm Castlelake confirmed it is “in the early stages of considering a possible offer” for the British low-cost carrier, stressing that no approach had yet been made to the board.
By Monday morning, EasyJet fired back, branding the interest “highly opportunistic” and pointing to a share price “temporarily depressed” by the fallout from the war in the Middle East. EasyJet’s board acknowledged its duty to weigh any genuine proposal, but planted two red flags: valuation and deliverability.
EasyJet insists the business is in “a position of strength,” boosted by an investment-grade, net-cash balance sheet, and remains fixed on its medium-term goal of more than £1 billion ($1.3 billion) in annual pre-tax profit. Under the UK Takeover Code, Castlelake has until 5 p.m. on June 26 to either table a firm offer or walk away.
EasyJet confirmed on M
