Investment firm Castlelake is considering making an offer for Britain’s EasyJet, the second-largest budget airline in Europe.
The Minnesota-based company confirmed Friday that it is contemplating a bid but said it had not yet approached EasyJet’s board of directors.
Castlelake said that, based on U.K. law, it has until 5 p.m. on June 26 to either announce its intent to make an offer or declare it will not.
EasyJet’s share price surged on news of Castlelake’s interest, but the airline said in a statement that it is confident in its current strategy and is not seeking a buyer. It also called Castlelake’s announcement “highly opportunistic” given the recent spike in the price of jet fuel, which has become a major financial obstacle for carriers across the world and especially in Europe and Asia.
EasyJet has seen a slide in its stock price since March, when Iran effectively closed the Strait of Hormuz.
On Monday, The Wall Street Journal reported that any bid from Castlelake would value EasyJet at least at $4.12 billion.
Castlelake entered the aviation sector last year with the launch of a dedicated lending entity, Merit AirFinance. In January, the firm reportedly entered talks with Spirit for a potential sale. A deal never materialized, and Spirit went out of business in May.
