easyJet has become the focus of a surprise takeover contest after the board said it was minded to recommend a possible £5.7bn all-cash offer from US private equity firm Apollo. The proposal values the airline at £7.15 a share and comes as interest in the low-cost carrier intensifies.
The new approach follows only days after easyJet’s directors agreed in principle to a £6.90 a share offer from another US private equity group, Castlelake. That earlier bid had been raised five times, but analysts said it still fell short of what the company was worth.
The latest move sent easyJet shares sharply higher in trading, reflecting investor reaction to the prospect of a competing bid. The airline’s board has not yet made a final commitment, but its statement signals that Apollo’s proposal has been taken seriously.
The developments come alongside a busy day in markets and corporate news, including Vodafone’s largest shareholder changing hands after a major stake sale, and other breaking business stories reported during the session.
Source: theguardian.com
