Apollo Management X has proposed a £5.5 billion acquisition of easyJet, offering £7.15 per share in cash with an optional stub equity alternative, while the easyJet board has withdrawn support for a competing Castlelake bid. The most followed valuation narrative puts easyJet's fair value at about £4.48, compared with a last close of £6.75, suggesting the stock could be 51% overvalued. The Apollo proposal follows a strong run in easyJet's share price, with a 30-day return of 35.04% and a 90-day return of 70.33%. Bulls view the offer as evidence that easyJet should command a higher price, while bears point to the stock trading below the bid price. EasyJet Holidays continues to show strong potential, targeting a 25% increase in customer numbers next year, but the company still faces supply constraints and higher operating costs that could pressure margins.
EasyJet PLCApollo's £5.5bn bid at £7.15/share, but valuation suggests 51% overvaluation; board withdrew support for competing bid.
easyJet board withdrew support for Castlelake's competing bid, reducing its chances.