EasyJet (LSE:EZJ) has thrown out a fourth takeover approach from US private credit firm Castlelake, with the airline's board declaring the £4.93 billion proposal substantially undervalues the company and raises serious questions about whether a deal could actually be completed.
The board's rejection of the £6.50 a share deal centres on two concerns: the price offered and the ownership structure underpinning any potential offer, which the board argues would extend the time required to satisfy regulatory conditions and meaningfully erode the present value of any offer price.
EasyJet has told Castlelake it would require satisfactory assurances and commitments on both points before any engagement could progress.
Rather than drawing a line, the board has requested a nine-day extension of the put-up-or-shut-up deadline from the Takeover Panel, which has been granted, to allow diligence access and give Castlelake room to return with a higher proposal and address the deliverability concerns.
Castlelake must now, by 5.00pm on Sunday 5 July, either announce a firm intention to make an offer under Rule 2.7 of the Code or walk away entirely, a declaration that would bind it under Rule 2.8.
EasyJet noted the announcement was made without Castlelake's consent.
