EasyJet shares are set to rise after the budget carrier agreed in principle to Castlelake's sweetened takeover offer, Citi analysts say in a research note. The latest proposal significantly increases the likelihood of a successful takeover, Citi says. Castlelake's fifth indicative offer, valuing easyJet at around $7 billion, has received a favorable initial response from the board. While the proposal remains conditional on regulatory approvals and other requirements, the deadline has been extended to Aug. 3. The analysts expect the shares to rise as investors assign a higher probability to the deal, noting that the previous share price implied only a roughly even chance of a takeover being completed. (nina.kienle@wsj.com)