EasyJet Plc shares plummeted 10.3% on Wednesday following a Reuters report that the European Union is preparing to review airline ownership rules. This review aims to prevent foreign investors from gaining effective control of EU carriers and could jeopardize takeover bids for easyJet by US investment firms Apollo Global Management and Castlelake.

An EU official stated the review, expected in autumn, is intended to "protect strategic autonomy" and ensure control of regional carriers remains within the bloc. This comes as Apollo and Castlelake are engaged in a bidding war for easyJet, with Apollo's £5.7bn offer trumping Castlelake's earlier proposal. The situation highlights potential concerns about private equity buyouts in a regulated industry.

The official emphasized the need to ensure foreign investors do not gain full control, noting that regulators have not yet discussed the specifics of the proposed deals with the parties involved. The review will clarify permissible corporate structures regarding control and ownership, addressing a perceived lax enforcement of existing rules.