easyJet has rejected a fourth takeover proposal from US investment firm Castlelake, turning down a 650 pence-per-share offer that valued the budget airline at £4.9 billion, while for the first time signalling it is open to engaging if the bidder can produce a more attractive proposal. Disclosed on 25 June 2026, the rejection marks a shift in tone from the board, which has agreed to share commercial information with Castlelake to help it improve its terms, a day before a key regulatory deadline.
The latest offer continues a steadily rising sequence. Castlelake has now lodged four proposals since its interest emerged, bidding 560 pence on 12 June, 600 pence on 17 June, 625 pence on 20 June, and now 650 pence, with each rejected by easyJet's board. The airline said the newest proposal still substantially undervalued the company and its prospects, and reiterated significant concerns about the ownership structure and the deliverability of any deal. The shares, which closed at 539 pence on Wednesday, rose around 5% in early trading on Thursday to 567 pence as the market weighed the prospect of an improved offer.
What distinguishes this rejection from the previous three is the board's openness to dialogue. Having dismissed Castlelake's earlier approaches as opportunistic and declined to engage, easyJet's directors have now indicated they are willing to provide the bidder with commercial information to support a more attractive proposal — a move that stops short of recommending a deal but signals the price gap may be narrowing toward a level at which talks could begin. The board's stated concerns centre not only on price but on structure: it warned about the time required to satisfy the conditions of any offer and the consequent effect on the present value of the price, and said it would expect satisfactory assurances and commitments on those points.
The structural complexity remains central to the board's caution. Castlelake's latest proposal would give easyJet shareholders non-voting shares in its takeover vehicle, which would be 49% owned by Castlelake and 51% by EU nationals — including former Malaysia Airlines chief Peter Bellew and Mark Breen, chief executive of Dublin-based Oneiros Aerospace — an arrangement required by EU ownership rules that mandate significant European involvement in the control of EU carriers. The board's repeated references to deliverability reflect concern that this structure, and the conditions attached to it, could delay or complicate completion in ways that erode the value shareholders would ultimately receive.
The shift toward engagement reflects pressure building from easyJet's own investors. Some shareholders have urged the board to hold out for a higher figure, with reports of investors pointing to a level around 700 pence as the point at which the company should engage in earnest — a view that helps explain why the board has opened the door to dialogue while still rejecting the current terms. The combination of a rising bid, a softening board stance and vocal shareholder expectations has turned what began as a flat rejection into a more conventional negotiation over price and terms.
How the situation develops now hinges on whether Castlelake raises its offer again and on the regulatory timetable governing the process. The board's decision to share information indicates it sees a deal as possible at the right price and structure, shifting the contest from whether easyJet will engage to what figure and what assurances would secure a recommendation. With the shares trading well below the 650 pence on the table and investors signalling appetite for more, the pressure now sits with Castlelake to improve both its price and the deliverability of its complex ownership structure if it wants to convert four rejections into an agreed deal.
More From Finance Monthly: easyJet Rejects Castlelake's £4.74bn Takeover Bid as "Opportunistic" as US Firm Takes Offer Public
