EasyJet has rejected a higher £4.93 billion approach from Castlelake but has extended the offer deadline to allow its US suitor more time to come up with a “more attractive proposal”.
The low cost carrier said Castlelake had submitted a fourth approach on Tuesday worth £6.50 a share. EasyJet said: “Having carefully reviewed it with its advisers, the board of easyJet continues to regard the fourth proposal as substantially undervaluing the company and its prospects and continuing to give rise to significant questions of deliverability.
“Accordingly, the board of easyJet has unanimously rejected the fourth proposal.
“However, the board believes that giving Castlelake access to limited commercial information, as Castlelake sought in the letter which contained the fourth proposal, might produce a more attractive proposal that better reflects the value of easyJet and its prospects and the interests of shareholders thereto.”
EasyJet added it “continues to be concerned about the ownership structure and deliverability of any offer from Castlelake”.
Earlier this week the budget carrier rejected another offer from Castlelake worth £4.74bn,accusing it of trying to buy the airline “on the cheap”.
Castlelake said it had made three further takeover approaches to the airline this month, all of which had been rejected.