Apollo bids £5.7bn for easyJet, topping Castlelake's £5.5bn offer in bidding war critics say exposes London market undervaluation

US private equity firm Apollo has bid £5.7bn for easyJet, outbidding Castlelake's £5.5bn offer that the airline's board had already agreed in principle.

EasyJet, the UK's largest low-cost airline, is at the centre of a bidding war between two US private equity firms. Apollo has tabled a £5.7bn offer (approximately £7.10 per share) gatecrashing a deal that had appeared settled with rival firm Castlelake, whose offer of £6.90 per share (£5.5bn) the easyJet board had agreed in principle to recommend. Apollo's surprise entry pushed easyJet's share price up by almost 10%, hitting a four-year high, and the board is now described as 'minded to recommend' the higher Apollo bid. The deal would take the airline private. Analysts and commentators have noted that both offers reflect a broader and troubling pattern of UK-listed companies being acquired at prices that suggest their shares are chronically undervalued on public markets, with one Guardian opinion piece describing the situation as 'depressing for the London market' and warning that mispriced shares have created an opening for US private equity 'raiders.'

Why it matters

A successful takeover would take easyJet — one of Europe's most recognisable budget airlines — private, removing it from public markets and placing it under US private equity ownership. The bidding war highlights ongoing concerns that UK firms are vulnerable to foreign acquisition due to depressed stock valuations.

What's next

The easyJet board is expected to make a formal recommendation on Apollo's £5.7bn offer, which could prompt a further counterbid from Castlelake.

Key facts

• Apollo has offered £5.7bn for easyJet, topping Castlelake's £5.5bn bid
• Castlelake's offer was priced at £6.90 per share
• EasyJet's board had agreed in principle to recommend the Castlelake deal before Apollo intervened
• EasyJet shares rose nearly 10% following news of Apollo's competing bid
• EasyJet is described as the UK's biggest low-cost carrier
• Analysts say both offers reflect UK listed companies being bought at cheap valuations

Bias & framing notes

All four sources are from The Guardian, so there is no cross-outlet corroboration; trust is limited by the single-outlet sourcing despite multiple articles. The framing across the Guardian's own coverage is consistent on the key facts, though earlier articles focus on the Castlelake deal while later ones shift to Apollo's entry. The analyst comment that UK firms are 'being bought on the cheap' appears without named attribution and leans slightly critical of the deals.

NewsClear — neutral news & congressional tracking · Bill of the Week