British budget airline EasyJet said Friday it reached an agreement in principle for a \u00a35.7-billion ($7.7-billion) takeover by U.S. private equity firm Apollo, topping a rival offer from fellow American private equity investor Castlelake<\/span>. <\/p>\n The fresh offer signals a bidding battle could now emerge between the two U.S. investors for ownership of the carrier. <\/p>\n Apollo’s offer of \u00a37.15 per share beats Castlelake’s bid of \u00a36.90 per share ($6.7 billion) by roughly $1 billion.<\/p>\n EasyJet said the proposal delivered a “superior outcome” for shareholders and as such, its board “is no longer minded to recommend the Castlelake proposal.” <\/p>\n Apollo has until Aug. 7 to make a firm offer or walk away under U.K. regulations. <\/p>\n EasyJet, listed in London, was set to be taken private by Castlelake after the carrier accepted its fifth beefed-up proposal on Sunday. <\/p>\n Despite rebuffing the early offers, EasyJet opened the door to talks on June 25, agreeing to give the U.S. fund access to commercial information in the hope of securing a more attractive proposal. <\/p>\n In May, EasyJet reported losses deepened by 27% in the first half of the financial year to \u00a3377 million as the U.S.-Iran conflict sent fuel prices soaring and upended travel plans. <\/p>\n The company warned that the second half of the year would also be affected, though chief executive Kenton Jarvis said the airline was “well placed” to ride out the turbulence.<\/p>\n