EasyJet PLC (LON:EZJ) shares rose more than 2% on Monday, trading up 2.4% to 645.37 pence, outperforming a largely unchanged FTSE 100. The rally followed the UK Takeover Panel’s approval to extend Castlelake’s "put up or shut up" deadline from August 3 to August 7, aligning it with the existing deadline set for Apollo Global Management. Both bidders now have until Thursday, August 7, to either announce a firm offer or withdraw under UK takeover rules, unless another extension is granted.
Apollo Global Management emerged as the frontrunner after easyJet backed its £5.7 billion (approximately $7.68 billion) takeover proposal, which exceeds Castlelake’s earlier £5.5 billion offer. The airline confirmed that it continues to provide due‑diligence access to both suitors since the latest proposals were submitted.
The takeover contest arrives as easyJet disclosed a sharp decline in third‑quarter profit, with earnings falling about 70% year‑on‑year. The company attributed the drop to fuel‑price volatility driven by the Iran conflict and a weakening of travel demand. Despite the profit slump, easyJet noted that booking trends are improving ahead of the peak summer season.
Investors will monitor whether either bidder enhances its proposal before the August 7 deadline or whether the takeover process is extended further.