EasyJet shares nosedive as it rejects takeover approach from Wizz Air

Budget airline has opted instead to raise $1.7bn from shareholders, which it said would strengthen its balance sheet should the Covid downturn continue and allow it to operate more aggressively once the recovery arrives

Investors have reacted badly to EasyJet's latest news, with shares plummeting by as much as 14%. File picture

EasyJet has rejected a takeover approach from Wizz Air that would have created a low-cost airline to rival Ryanair, opting instead to raise $1.7bn (€1.43bn) from shareholders and go it alone in an industry battling to recover from the pandemic.

EasyJet declined to name its suitor, but a source said it was Wizz Air.