Apollo Global Management has outbid Castlelake with a £5.7bn bid, prompting easyJet’s board to abandon the earlier £6.90 per share proposal and shift its endorsement.

The new offer delivers higher cash to shareholders and includes a stub‑equity alternative that lets holders roll existing shares into the acquisition vehicle. The board claimed the terms create a superior outcome and noted that Apollo’s proposal sits at a level it would recommend to shareholders. Apollo must announce a firm intention by 7 August, while Castlelake faces a deadline of 3 August.

Shares rose 14% after the announcement but still trade below the offer price. Apollo’s bid carries an 81% premium to easyJet’s £3.94 close on 28 May, the last trading day before the Iran conflict muted the carrier’s valuation.

Apollo already owns stakes in Atlas Air and Modern Aviation and last year extended a $745 m loan to Virgin Atlantic. The move strengthens its aviation portfolio and signals a competitive push in the low‑cost sector. For investors, the higher price and brand retention make the deal attractive, while regulators will examine the transaction for competition concerns.