The authors are Reuters Breakingviews columnists. The opinions expressed are their own.

By Oliver Taslic and Liam Proud

LONDON, July 10 (Reuters Breakingviews) - The US giant trumped Castlelake with a £5.7 bln proposal. It’s a slim bump, but Apollo is ahead on the non-financial side too. It has airline-owning experience, made clear regulatory promises and may be wooing easyJet’s founder-shareholder. It all sets a high bar for Castlelake.

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CONTEXT NEWS

UK-listed airline easyJet said on July 10 that it had agreed in principle to a takeover proposal from U.S. asset manager Apollo Global Management that values the company at around £5.7 billion ($7.7 billion).

Under the terms of the Apollo proposal, easyJet shareholders would be entitled to receive 715 pence per easyJet share, trumping a previous 690 pence per share proposal from U.S. alternative investment firm Castlelake. Apollo is also proposing a “stub equity alternative”, through which “eligible easyJet shareholders” would have the opportunity to roll their existing easyJet stakes into the investment vehicle. The terms of any such stub equity alternative, which would have voting rights, remain subject to further discussion and agreement, according to the statement.

Should a firm offer be made at Apollo’s proposed level, easyJet said it would be minded to recommend it to shareholders. It added it was “no longer minded” to recommend the Castlelake proposal.

Under UK takeover rules, Apollo has until August 7 to either announce a firm intention to make an offer or walk away.

Shares in easyJet were up 14% at 670 pence at 0710 GMT on July 10.