Budget airline easyJet has agreed to a takeover bid from US firm Apollo, which the carrier says has trumped a recent offer from rival bidder Castlelake.
Key facts
- EasyJet has agreed to a takeover bid from US firm Apollo.
- Apollo's offer is valued at $7.7 billion, according to CNBC.
- Apollo's bid trumped a recent takeover offer from Castlelake, the airline said.
- Both Apollo and Castlelake submitted takeover offers, which CNBC described as a bidding war.
- EasyJet shares rose 13% following the news, per CNBC.
Budget carrier easyJet has agreed to a surprise takeover bid from US firm Apollo, the airline announced. According to the BBC, the offer from Apollo has trumped a recent takeover proposal from rival bidder Castlelake.
The developments follow what CNBC described as a bidding war for the airline, after both Apollo and Castlelake submitted takeover offers. CNBC reported that Apollo’s bid values easyJet at $7.7 billion.
News of the competing offers sent easyJet’s share price higher. CNBC reported that the airline’s stock jumped 13% as the market weighed the rival takeover proposals.
The BBC reported that easyJet indicated Apollo’s bid outweighed the earlier proposal from Castlelake.
Why it matters
A takeover would change the ownership of easyJet, one of Europe's largest low-cost carriers. The competing offers, as reported by the BBC and CNBC, also drove the airline's share price sharply higher.
Frequently asked questions
Who is trying to buy easyJet?
US firm Apollo and rival bidder Castlelake both submitted takeover offers for easyJet, and the airline has agreed to Apollo's bid, according to the BBC and CNBC.
How much is Apollo's bid worth?
According to CNBC, Apollo's takeover bid values easyJet at $7.7 billion.
How did easyJet's share price react?
CNBC reported that easyJet shares rose 13% as the airline weighed the competing takeover bids.