EasyJet PLC turned down a preliminary bid approach from rival Wizz Air PLC and decided to raise £1.2bn instead through a rights issue, it said today.
The low-cost carrier did not name which company had made the approach, but sources later confirmed it was Wizz Air.
The Luton-based airline said the all-share approach fundamentally undervalued its business and that the potential bidder had since ended its interest.
Johan Lundgren, chief executive, said the £1.2bn would strengthen its balance sheet if the COVID-19 downturn continues and allow it to take advantage of any air travel recovery.
"I believe this is really a once in a lifetime opportunity," Lundgren said.
EasyJet shares tumbled 9% today to 719p valuing it around £3.3bn compared to Wizz Air’s £5.1bn