EasyJet has agreed in principle to compete in the £5.7bn takeover bid from the US company.

No-frills airline EasyJet has said it has agreed in principle to a £5.7bn takeover proposal from US firm Apollo Management.

The bid trumps easyJet’s previous bid from US investment firm Castlelake They agreed in principle. at the end of the week.

According to EasyJet, shareholders would receive £7.15 per share under the Apollo proposal, compared with £6.90 under the Castlelake offer.

The airline said the Apollo offer offered “a better outcome” for shareholders and was therefore “not interested” in recommending a Castlelake bid.