EasyJet shares surged more than 13 per cent after stock markets opened on Friday morning after it accepted a rival takeover offer.The new offer, from US private equity firm Apollo, values the airline at £5.7bn with a £7.15 per share bid – materially higher than Castlelake’s fourth offer of £5.2bn, or £6.90 per share.Overall, the newest offer represents an uplift of 81 per cent to the EasyJet share price from the day before Castlelake’s interest and first bid became clear. The EasyJet share price has not reached the £7.15 level since 2021.The airline’s board said Apollo's offer “delivers a superior outcome” for shareholders, given its higher value, and that they were “no longer minded to recommend the Castlelake proposal”. Apollo are set to keep the EasyJet brand and highlighted that the quality staff in place was vital. “Apollo places a high value on people and believes that identifying and retaining key staff within the easyJet Group will be of paramount importance,” a statement read. A further note to investors from EasyJet said: “Apollo has followed easyJet for many years and continues to regard it as one of the most attractive businesses in the global aviation sector and a highly differentiated franchise with significant long-term growth potential.“Apollo believes in easyJet’s existing strategy of evolving and strengthening the low-cost carrier model, most notably through upgauging the fleet, enhancing the ancillary and loyalty offering, and scaling holidays into a structurally differentiated earnings stream.”There are still some hurdles to clear before any deal is completed.Apollo has until 7 August to put in a formal offer, under takeover rules, and it is not yet clear whether Castlelake - or even a third party - will return to the table with an improved offer.There are also questions over how the US-based Apollo bid will clear European regulations, which require a majority ownership to sit within the continent.EasyJet has rejected a higher £4.93 billion approach from Castlelake but has extended the offer deadline to allow its US suitor more time to come up with a ‘more attractive proposal’ (Alamy/PA) (Alamy/PA)Get a free fractional share worth up to £100.Capital at risk.Terms and conditions apply.Go to websiteADVERTISEMENTGet a free fractional share worth up to £100.Capital at risk.Terms and conditions apply.Go to websiteADVERTISEMENTUnder the terms of the bid, Apollo will allow some existing shareholders to roll their holding into the new private company, which includes Sir Stelios Haji-Ioannou, the founder of EasyJet who still retains around a 15 per cent ownership.Apollo have previously invested in Virgin Atlantic and Air France-KLM. Chris Beauchamp, chief market analyst at investing platform IG, said: “It's no surprise that a second suitor has appeared for easyJet, the potential for the business remains substantial despite the underwhelming performance of recent years. While shareholders will cheer a bidding war that increases the windfall, the risk of piling on debt into the business as part of the process runs the risk of underperformance in the future.”Richard Hunter, head of markets at interactive investor, added that the “prospect of a bidding war lifted the shares higher [and has] investors now focused on a further potential knockout offer which could propel the firm’s share price ascent.”What you need to know about EasyJet: EasyJet has been around for more than 30 years and pioneered the UK’s budget air travel transformation.Who founded EasyJet?Greek Cypriot entrepreneur Sir Stelios Haji-Ioannou created the airline, which he named after writing ideas on a napkin.After researching low-cost air travel in the US, he believed he could replicate the model in Europe.EasyJet’s inaugural flight was from Luton to Glasgow on 10 November 1995.Tickets were available from £29, which EasyJet described as being the same as the price of a pair of jeans.When did EasyJet float on the London Stock Exchange?This happened on 22 November 2000, just more than five years after its first flight.It was initially valued at £777m.How many passengers fly with EasyJet?EasyJet carried a total of 93.4 million passengers in the year to the end of September 2025.It operated nearly 576,000 flights in 2024/25.It helped drive the growth of low-cost air travel, opening up foreign holiday destinations for millions more people.It serves about 20 UK airports, carrying approximately 50 million passengers per year.It is one of Europe’s largest airlines, with 355 aircraft operating 1,207 routes, serving 164 airports in 38 countries.Additional reporting by PA