What changed between EasyJet’s June 25 rejection and “in principle” acceptance?

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EasyJet Accepted Castlelake's Fifth Takeover Offer After Increased Valuation

EasyJet has agreed in principle to Castlelake's fifth takeover offer, a significant shift from its rejection of a previous bid on June 25. The latest offer from the US investor values the budget airline at £5.2 billion, with an increased price of £6.90 per share. This acceptance follows EasyJet's earlier statement that it would reconsider if a "more attractive proposal" was presented.
Valuation Increase Drove Acceptance

The primary factor in EasyJet's change of stance appears to be the enhanced financial terms of Castlelake's offer. The initial rejection on June 25 was for a £4.93 billion bid, which, while an increase from prior offers, was not deemed sufficiently attractive. Castlelake's subsequent fifth offer, raising the valuation to £5.2 billion and the per-share price to £6.90, met the threshold for the airline's board to agree "in principle."
Previous Rejection and Conditions for Reconsideration

On June 25, EasyJet explicitly rejected Castlelake's offer, stating it was not sufficiently attractive. However, the airline's board left the door open for further negotiation, indicating that they could reconsider if a "more attractive proposal" emerged. This statement provided a clear signal to Castlelake that an improved offer, particularly in financial terms, could lead to a different outcome.
Castlelake's Need for Partners and Potential Management Collaboration

Given that Castlelake is a US company, it requires partners to gain majority control of a European airline like EasyJet. Reports indicate that Castlelake intends to collaborate with aviation managers Peter Bellew and Mark Breen. Bellew has prior experience at EasyJet, having departed the company in 2022. This suggests that the operational and management aspects of the deal may also be a consideration in the overall attractiveness of the proposal.

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What changed between EasyJet’s June 25 rejection and “in principle” acceptance?

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