EasyJet shares took off in early dealmaking Monday after the U.K. low-cost carrier agreed in principle to a £5.5 billion ($7.3 billion) takeover bid from U.S. private equity manager Castlelake.
The budget airline was up 10.5% shortly after 8:15 a.m. in London (3:15 a.m. E.T.).
Castlelake’s improved plan to take EasyJet private, which was agreed on Sunday, comes after the carrier last month rejected a £4.93 billion proposal from the private equity firm.
EasyJet.
The new bid represents a cash offer of $6.90 per share. Castlelake now has until Aug. 3 to make a firm offer or walk away from the deal.
The offer comes amid a period of stress for the global aviation sector, as airlines navigate a jet fuel squeeze caused by the conflict in the Middle East.
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