Castlelake's board proposal to take private easyJet was rebuffed on Tuesday, with the airline's directors rejecting the third £4.74 billion ($6.3 billion) bid. The offer would have paid shareholders 625 pence per share in cash, a 59% premium to easyJet's closing price of 394.20 pence on May 28. easyJet declined to comment when contacted for reaction in the market.

Castlelake urged investors to weigh the proposal before the June 26 deadline that forces any suitor to lodge a formal intention. The firm argues the airline's valuation has been artificially suppressed by fallout from the Middle East conflict, which pushed the share price down temporarily. The proposal targets a leveraged buyout structure.

Investors see the board's dismissal as a signal that easyJet may remain independent, yet the premium suggests a sizable upside if the deal closes. A successful privatization could reshape the low‑cost carrier market by removing a publicly traded player, while a continued share slump keeps the airline vulnerable to cost pressures and fuel volatility. Analysts note the airline carries £1.2 billion of debt.