US Firm Apollo Tops Rival Bid for EasyJet
US company Apollo made a takeover bid for EasyJet. The bid is worth £5.7 billion.
Apollo's offer beats an earlier bid from company Castlelake. Apollo will pay £7.15 per share.
Castlelake had offered £6.90 per share. EasyJet had accepted Castlelake's offer just days earlier.
EasyJet then switched to support Apollo's bid instead. EasyJet said Apollo's offer is better for shareholders.
Both companies face UK deadlines to finalize their bids. Castlelake's deadline is August 3.
Apollo's deadline is August 7. Apollo promised to keep the EasyJet brand name.
It would also keep EasyJet's license deal with easyGroup. EasyJet founder Stelios Haji-Ioannou owns easyGroup.
EasyJet's stock price rose about 13% after the bids were announced. The bidding contest comes as EasyJet reports bigger losses. Airlines also face rising fuel costs linked to the US-Iran conflict.
Key Terms 4
- Apollo A large US investment company making the takeover bid.
- Castlelake An investment company that made an earlier bid for EasyJet.
- easyGroup A company owned by EasyJet's founder that licenses the EasyJet name.
- pre-tax loss Money a company lost before taxes are counted.