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Tag: Flybe

Top Flybe investor declares war over £2m sale

Top Flybe investor declares war over £2m sale

Business
Flybe's biggest shareholder has launched a stunning attack on its directors, accusing them of breaching their duties to investors and threatening a legal challenge to the cut-price takeover of one of Britain's best-known airlines. Sky News has learnt that Hosking Partners, a prominent London-based asset manager which holds a stake of close to 19% in Flybe, has instructed lawyers to explore its options in relation to the company's proposed sale to a consortium‎ led by Virgin Atlantic Airways.These options could include attempting to obtain an injunction prohibiting the deal from being completed, Hosking Partners is understood to have warned Flybe's bosses this week.The initial 1p-a-share deal, announced eight days ago, came at a huge discount to the airline's prevailin...
Flybe rescued by Virgin in cut-price takeover deal

Flybe rescued by Virgin in cut-price takeover deal

Business
A takeover has been agreed of the troubled regional airline Flybe in a £2.2m deal by a consortium led by Richard Branson's Virgin Atlantic. The move, previously revealed by Sky News' Mark Kleinman, offers just 1p per share, significantly less than the company's closing price of 16.38p on Thursday.Shares were 90% down on market opening, reflecting the massive markdown in the value of the company.The consortium, which includes Stobart Group and Cyrus Capital Partners, will form a new airline group.Flybe will combine with Stobart Airways in a joint venture called Connect Airways.Cyrus will own 40% of the new company, while Virgin and Stobart will each take a 30% share.Under the deal, the three firms will also provide a £20m bridge loan to Flybe and £80m of furt...