EasyJet stock soared Friday after the budget carrier said it is considering a $7.7 billion takeover bid from Apollo Global Management, putting the airline at the center of a private equity bidding war.

Under the terms of the cash offer, easyJet shareholders would be entitled to £7.15 ($9.61) per share of the company, valuing the firm at £5.7 billion, around $7.66 billion.

As an alternative to the cash payment, Apollo would also offer shareholders a Stub Equity Alternative – the option to “roll their existing shareholding in easyJet into the vehicle through which the Apollo Funds would hold their investment in…