EasyJet’s stock jumped sharply on Friday after Apollo Global Management made an unsolicited offer of 715p per share for the British budget airline, topping a rival bid from Castlelake and kicking off what analysts are calling an outright bidding war.
EasyJet receives a fresh offer from Apollo that beats a rival proposal from Castlelake, setting up a possible surprise competition between the two investors https://t.co/mzRcOOCw3h
— Bloomberg (@business) July 10, 2026
The 715p cash offer values EasyJet at £5.7 billion ($7.7 billion) and represents a 21.6% premium to EasyJet’s previous closing price of 588.20p. Shares hit 674.98p in London trading — their highest since late February 2022 — still trading below both offer prices.
Apollo’s offer arrived days after EasyJet had agreed in principle to Castlelake’s fifth and final bid of 690p per share. EasyJet’s board said it is “no longer minded” to recommend the Castlelake proposal.
“A bidding war is on,” said Neil Wilson, investor strategist at Saxo UK.
EasyJet said its board is now prepared to recommend Apollo’s proposal to shareholders, pending agreement on remaining deal terms.
Airport slots, a modern Airbus fleet order book, and a fast-growing holidays division are seen as the main draws for both suitors.
Susannah Streeter, chief investment strategist at Wealth Club, said the holidays business was likely a key attraction. Package holidays generate higher margins and more predictable revenues than airline tickets, she noted.
Morgan Stanley said Apollo plans to back EasyJet’s existing strategy — expanding its fleet, growing ancillary revenue, and scaling the holidays unit. The bank argued EasyJet has greater long-term growth potential under private ownership.
Apollo manages more than $1 trillion in assets and is no stranger to aviation, having previously invested in Aeromexico, Sun Country Airlines and Atlas Air, and provided financing to Air France-KLM and Virgin Atlantic.
One complication both bidders face: EU and UK rules require airlines operating within the bloc to be majority owned and controlled by European nationals.
Castlelake’s proposal addressed this by designating 51% ownership to EU nationals, including aviation veterans Peter Bellew and Mark Breen.
Apollo confirmed it would take the necessary steps to find a European partner but has not provided further details.
Under UK takeover rules, Apollo has until August 7 to submit a firm offer or walk away. Castlelake’s deadline falls four days earlier on August 3.
Apollo shares slipped 1.1% in U.S. premarket trading following the announcement.
In May, EasyJet reported that first-half losses deepened 27% to £377 million, with rising fuel costs tied to the US-Iran conflict cited as a key factor. The company flagged that the second half would also be affected.
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