Flybe rejects rival takeover proposal

FLYBE has snubbed a rival takeover offer from a US airline which was backed by former Stobart Group boss Andrew Tinkler.

Shares more than doubled to 2.8p after a ‘highly conditional’ approach from a consortium including Mesa Airlines of Arizona and New Yorkbased investment group Bateleur Capital.

But Flybe insisted the deal it signed with Connect Airways, a consortium of Virgin, Stobart and private equity group Cyrus Capital, was ‘the only viable option available’. The rejection is likely to upset shareholders furious it is being sold for 1p per share, a deal that values Flybe at £2.2m.