June 22 - Leading shareholders in EasyJet and individuals familiar with takeover talks are pressing U.S. investor Castlelake to raise its offer by at least A3600 million, according to a Financial Times report citing those investors and other people with knowledge of the discussions.
The airline rejected Castlelake's approach, a $6.3 billion bid that EasyJet described as undervaluing the business, the report said. Castlelake had made the offer public earlier on the same day.
One large, unnamed investor told the Financial Times: "I think they'll engage if the price is at seven plus," referring to an offer of at least A37 per share - a level that would place EasyJet's valuation at roughly A35.3 billion.
Castlelake said in an earlier statement that EasyJet's "unwillingness to engage meaningfully" was part of its rationale for taking the bid public. The offer, the firm added, included a partial equity alternative for investors as part of the proposal.
According to the report, Castlelake declined to comment on the coverage. EasyJet did not immediately respond to requests for comment. ($1 = 0.7552 pounds)
Context and implications
The Financial Times account attributes the push for a higher price to leading shareholders and other individuals close to the process. The cited investor comment identifies a concrete threshold - at least A37 per share - that shareholders would consider sufficient to begin substantive engagement with Castlelake.
Castlelake's public disclosure and its explanation that the airline was not engaging meaningfully are factual elements reported in the statement the firm issued prior to the shareholder-sourced coverage.
Both Castlelake's decision to include a partial equity alternative and the shareholder demand for a higher price are elements reported by the Financial Times and noted by the parties quoted in that coverage.