EasyJet rejects takeover bid and announces £1.2bn rights issue

Shares in budget airline easyJet tumbled today after it said it had rejected a rival’s takeover bid and would be raising cash from shareholders and taking on more debt. Saloni Sardana reports.

Easyjet and Wizz Air planes
EasyJet rejected the bid, said to be from Hungarian rival Wizz Air
(Image credit: © Chris J. Ratcliffe/Bloomberg via Getty Images)

The board of British budget airline easyJet unanimously rejected a takeover bid by a rival on Thursday on grounds the offer “undervalued the business”.

Johan Lundgren, the company’s chief executive, confirmed nothing, but the unsolicited approach is said to be from Hungarian airline Wizz Air, reports the Financial Times

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Saloni Sardana

Saloni is a web writer for MoneyWeek focusing on personal finance and global financial markets. Her work has appeared in FTAdviser (part of the Financial Times),  Business Insider and City A.M, among other publications. She holds a masters in international journalism from City, University of London.

Follow her on Twitter at @sardana_saloni