EasyJet agrees to $7.7 billion takeover bid from U.S. investment firm
EasyJet is considering a $7.7 billion takeover bid from U.S. investment firm Apollo Global Management. The airline's board is shifting its preference away from a previous agreement with Castlelake due to the higher valuation offered by Apollo.
Why it matters
Significant consolidation in the European aviation sector impacts market competition and travel industry pricing.
July 10 (UPI) -- British airline EasyJet said on Friday it is considering a takeover bid worth $7.7 billion from an U.S. investment firm.
The bid from Apollo Global Management comes days after the low-cost carrier, one of Europe's largest, had said it entered a takeover agreement with investment firm Castlelake.
But Apollo is offering $9.6 per share, valuing the company at nearly $7.7 billion, compared to Castlelake's $9.2.
In a statement, EasyJet leadership said Apollo's bid "offers an attractive combination of value, strategic alignment and long-term stewardship of the business."
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