easyJet: A bidding war?

Research evidence excerpt

easyJet: A bidding war?

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easyJet

A bidding war?

Maintain Rating: NO RATING | PO: NA | Price: 588.20 GBp

Apollo offers a higher bid 10 July 2026

easyJet announced today that the Board is minded to recommend Apollo’s GBp715 per- Equity

share offer, instead of Castlelake’s proposal of GBp690 (see easyJet: Board recommends

Castlelake offer). The deadline for Apollo to provide a firm offer is 5pm on 7 August. We Muneeba Kayani >>

Research Analyst

maintain a No rating as the stock is not trading on its fundamentals. MLI (UK)

+44 20 7996 5208

muneeba.kayani@bofa.comA smaller airline? May be less likely with Apollo

As per the release, Apollo believes in easyJet management’s existing strategy of Kate Xiao, CFA >>

upgrading the fleet, enhancing the ancillary and loyalty offering, and growing the MLI (UK)

holidays business. Both bidders would need to continue operating the airline to comply +44 20 7996 3051 kate.xiao2@bofa.com

with UK Takeover Panel requirements and meet Airbus aircraft deliveries. However,

Jack Raeburn >>

Apollo appears more committed to growing the current business than Castlelake, in our Research Analyst

view. It has a history of investing in aviation across fleets and operating airlines. We had MLI (UK)

+44 20 7996 3374

thought Castlelake would be more likely to reduce the size of the airline in terms of fleet jack.raeburn@bofa.com

and airport bases. This possibility may be less likely if Apollo’s bid succeeds, in our view

Regulatory hurdles remain

Similar to Castlelake, Apollo has agreed to a “best endeavours” commitment to obtain Stock Data

any regulatory approvals required to complete a transaction. Apollo would need to

Price 588.20 GBp

satisfy UK and EU ownership and control requirements for easyJet to continue operating