EasyJet pops 13% as airline weighs $7.7 billion rival takeover bid from Apollo

EasyJet stock soared Friday after the budget carrier said it is considering a $7.7 billion takeover bid from Apollo Global Management.

Under the terms of the cash offer, easyJet shareholders would be entitled to £7.15 ($9.61) per share of the company, valuing the firm at £5.7 billion, around $7.66 billion.

As an alternative to the cash payment, Apollo would also offer shareholders a Stub Equity Alternative – the option to "roll their existing shareholding in easyJet into the vehicle through which the Apollo Funds would hold their investment in easyJet."

The terms of that alternative, which would see shareholders maintain their voting rights, is still subject to further discussion.

Shares soared over 13% shortly after the market open, after initially breaking above a gain of 14% immediately after the opening bell.

EasyJet share price

EasyJet's shares soared on Monday after the airline accepted a $7.3 billion takeover offer from private equity firm Castlelake.

Apollo's proposed offer price represents an 81% premium to easyJet's closing share price of £3.94 per share on May 28, which was the final business day before the offer period began on Castlelake's bid to take over the company.

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