22nd Mar 2018 10:47
Shares in Flybe were 21% lower at
Flybe shares had originally soared 36% on February 22 when Stobart - an infrastructure and support services firm - confirmed it was considering a bid for Flybe.
On Thursday, however, Stobart said it had been "unable to reach agreement on satisfactory terms" with Flybe. This was after Flybe rejected its latest proposal and Stobart considered it not in the interest of shareholders to increase the bid.
As a result, Stobart will not be making a offer for Flybe.
"Stobart Group and Flybe enjoy a range of shared interests as well as a growing franchise arrangement between the two groups' airlines and it is Stobart Group's intention to continue the collaborative working relationship between both companies," Stobart said in a statement.
Under
When the talks were originally announced in late February, Stobart confirmed it had been reviewing alternative structures for its airline and leasing business in order to consolidate the regional airline sector since October 2017.
In a separate announced, Flybe said it remained "highly confident" in its prospects believing it has an "exciting future as an independent company."
In particular, Flybe focused on making further progress with its sustainable business improvement plan announced in June 2017.
Flybe explained: "This plan is focused on driving sustainable profit and cash generation and will see the fleet size reduce to an optimum level for the number of identified profitable routes and make the business demand-driven rather than capacity-led."
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