EasyJet has rejected a potential takeover bid from a leading US investment firm, labeling it as “highly opportunistic” and clarifying that no formal talks had occurred between the two parties.
The low-cost carrier disclosed that Castlelake’s interest surfaced amid concerns over the impact of the Iran conflict on fuel prices and travel demand, leading to a decline in its stock value.
Castlelake disclosed its contemplation of an offer for easyJet after market close in London, emphasizing that no direct communication had been initiated with easyJet’s Board and highlighting the uncertainty surrounding the bid’s likelihood.
According to takeover regulations, Castlelake has until June 26 to either confirm a firm intention to bid or withdraw from the potential acquisition.
In response, easyJet stated on Monday that no discussions or proposals had been received from Castlelake, pointing out the strategic timing of the bid during a period when external factors were affecting the airline’s financial performance.
The airline, based in Luton, acknowledged the intricate challenges associated with a prospective takeover and reported a £552 million loss for the first half of the fiscal year, partly attributed to increased demand for summer travel bookings.
Despite the financial setback, easyJet’s Chief Executive noted a strong demand trend in last-minute bookings, indicating a positive outlook for summer travel as customers adopt a cautious approach to planning their trips.
