EasyJet Plc confirmed Friday it is evaluating a $7.7 billion cash offer from Apollo Global Management at 715 pence per share, an 81% premium to the airline's May 28 closing price of £3.94. The proposal eclipses the $7.3 billion bid from rival private equity firm Castlelake that EasyJet's board had already recommended, setting up a rare public bidding war between two US investment funds for a European carrier.

Apollo's offer includes a Stub Equity Alternative allowing shareholders to roll their holdings into the acquisition vehicle and retain voting rights, though terms remain under discussion. The cash component values EasyJet at £5.7 billion. EasyJet shares surged Monday after the Castlelake agreement was announced, but Apollo's higher price forces the board to reconsider its recommendation.

The Castlelake bid, unveiled earlier this week, had secured support from EasyJet's largest shareholder, Stelios Haji-Ioannou, who owns roughly 15% through his easyGroup vehicle. His backing for a competing Apollo offer remains unclear. Both suitors see value in EasyJet's slot portfolio at constrained European airports and its post-pandemic cost discipline.

A bidding war would test whether private equity can extract synergies from a regulated airline with unionized labor and slot restrictions. Investors should watch for Castlelake's response — a revised offer or withdrawal — and whether EasyJet's independent directors engage formal auction procedures. The outcome will signal appetite for European aviation assets amid capacity constraints and rising travel demand.