EasyJet Agrees to $7.65 Billion Takeover Bid from Apollo Global

British low-cost airline EasyJet has agreed in principle to a takeover offer from American investment firm Apollo Global, valued at 5.7 billion pounds (7.65 billion dollars), or 7.15 pounds per share. This announcement came on Friday, following EasyJet's earlier agreement this week with another US investment company, Castlelake, for a 5 billion pound offer at 6.9 pounds per share.

Reuters reports that Apollo's higher bid could trigger a bidding war for the London Stock Exchange-listed airline. Apollo's offer represents an 81% premium over EasyJet's closing share price of 3.94 pounds on May 28, the last trading day before Castlelake's initial offer period began. EasyJet's board has stated it does not intend to recommend Castlelake's proposal, which was already an improvement over a previous 6.5 pounds per share bid rejected ten days ago for undervaluing the company.

EasyJet and Apollo jointly noted that the new offer is superior for EasyJet shareholders due to its higher valuation. However, the deal is not finalized; Apollo must submit a binding offer by August 7, while Castlelake's deadline is August 3. EasyJet is one of Europe's largest airlines, operating around 1,200 routes across 35 countries and employing over 19,000 people.