According to multiple sources within the industry, low-cost airline easyJet (U2/EZY) has rejected a bid from a rival low-cost airline.
The bid was put to the board who reportedly considered the offer for some time before coming to the decision to reject the offer.
Some sources have suggested that ambitious budget airline Wizz Air was behind the offer.
easyJet has opted instead to effectively devalue the airline by issuing new share rights issue worth £1.2bn.
Industry analysts have also suggested that the airline is being “made ready” for a take-over or merger following the appointment of former RBS boss Stephen Hester as the incoming Chairman.
As is often the case, easyJet’s board has not commented on the take-over bid.