LONDON — British low-cost airline easyJet has received a new £5.7 billion ($7.7 billion) takeover proposal from U.S.-based investment firm Apollo Global Management, triggering a sharp rally in the airline’s shares and intensifying the battle for control of the carrier.

Apollo’s all-cash offer values easyJet at 715 pence per share, exceeding the previous 690 pence-per-share proposal made by U.S. investment firm Castlelake. The new bid prompted easyJet’s board to withdraw its earlier support for Castlelake’s proposal and indicate that it is now inclined to recommend Apollo’s offer to shareholders.

Following the announcement, easyJet shares surged by approximately 13%, reflecting investor optimism that a bidding war could further increase the airline’s valuation.

Apollo’s proposal includes an option allowing eligible shareholders to retain an investment in the airline through a private investment vehicle after the acquisition. The firm also pledged to preserve easyJet’s existing business strategy, management team, fleet modernization plans, and the airline’s long-standing brand licensing agreement with easyGroup, controlled by founder Sir Stelios Haji-Ioannou, who remains the company’s largest shareholder with a stake of more than 15%.

The takeover battle comes just days after easyJet had agreed in principle to Castlelake’s offer. Apollo’s higher bid has now shifted momentum in its favor, although the acquisition remains subject to regulatory approvals, particularly European Union rules requiring EU ownership and control of airlines operating within the bloc.

Under UK takeover regulations, Apollo has until August 7 to submit a formal offer or withdraw from the process. Meanwhile, analysts expect competition between Apollo and Castlelake could continue, potentially driving the final purchase price even higher.

Source: Patronlar Dünyası/ Prepared by: İlayda Gök