Flybe Group PLC (LON:FLYB) has moved to back its under-fire chairman as the row over its proposed cut-price sale to a consortium headed by Virgin Atlantic rumbles on.
The embattled airline confirmed press reports over the weekend that Hosking Partners, which holds an almost-19% stake in the company, has requested a general meeting, during which it will look to oust chairman Simon Laffin.
READ: Major Flybe shareholder looking to stop £2.2mln Virgin takeover
Instead, Hosking wants to install experienced aviation executive Eric Kohn who would then carry out a full investigation into the sales process, which culminated in shareholders being offered a discounted 1p-a-share from Virgin-backed Connect Airways earlier this month.
That deal was then restructured only a few days later, with Flybe agreeing to sell its main assets to Connect for £2.8mln in a transaction which does not require shareholder approval.
Flybe reiterated its belief on Monday that it has acted “at all times in the interests of its shareholders” through what it called an “extremely difficult and challenging” few months.
It added: “The board continues to have full confidence in its chairman, Simon Laffin, and believes that any independent scrutiny of its conduct will support the board's decision-making.”
Flybe shares, which have been volatile since news of the Connect offer, surged 26% to 4.3p at the opening bell on Monday.