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Apollo wins easyJet bid of $7.65 billion over Castlelake

EasyJet, the British budget airline, said that it had agreed to a takeover offer of PS5.7 billion ($7.65billion) from Apollo Global. This was a higher bid than a rival suitor Castlelake.

Apollo's offer of around PS7.15 per easyJet shares is approximately 3.6% higher than Castlelake’s latest bid. This could be the beginning of a battle to takeover?the London listed carrier. EasyJet's board announced that it would no longer recommend Castlelake’s proposal of PS6.90 a share, which the two parties had agreed on in principle just days earlier.

EasyJet and Apollo stated in a joint press release that the cash offer was superior for easyJet's shareholders, as it provided a "higher cash value" than Castlelake’s latest proposal.

Apollo must make a "firm" offer to easyJet before August 7, or they will walk away. Castlelake has until August 3

"Apollo believes in easyJet’s existing strategy to evolve and strengthen the?low cost carrier model," said?Apollo. ($1 = PS0.7447) (Reporting by ?Yamini Kalia and Yadarisa Shabong in Bengaluru Editing by Rashmi Aich, Subhranshu Sahu and David Goodman)

(source: Reuters)