EasyJet Plc received an offer from private equity firm Apollo Global Management for 715 pence a share that beats a rival proposal from Castlelake LP, a surprise twist in the takeover saga that sets up a possible bidding war between the two US investment funds.

EasyJet Plc signaled willingness to entertain a higher offer from Castlelake LP by granting the US investment firm more time and some access to its books in order to sweeten its latest bid, which values the UK discount carrier at about £4.93 billion ($6.5 billion)

EasyJet Plc has rebuffed three separate offers from Castlelake LP, prompting the investment firm to take its proposal valuing the budget carrier at about £4.74 billion ($6.3 billion) directly to shareholders.

EasyJet Plc called the overture by investment firm Castlelake LP “highly opportunistic” given its depressed stock price and cautioned that a takeover of the UK carrier would be fraught with risk.

EasyJet Plc, the UK airline that helped pioneer ultra low-cost travel in Europe over the past three decades, has drawn takeover interest from an investment firm, potentially shaking up the regional airline market as it navigates high fuel costs and steep competition.

EasyJet Plc shares fell the most since 2022 after the UK budget airline warned of a loss in the first half of this fiscal year because of disruptions from the Iran war.