Why A US Firm Cannot Simply Buy A European Airline Outright

Apollo Global Management appeared to pull off something remarkably straightforward this week: the New York-based investment giant agreed to buy easyJet for £5.7 billion ($7.7 billion), beating out fellow US investor Castlelake to one of Europe’s largest low-cost airlines. Reuters reports that Apollo’s £7.15-per-share offer represented an 81% premium to easyJet’s closing price before investor interest became public, while easyJet founder Sir Stelios Haji-Ioannou and the airline’s board backed the transaction.