Flybe’s largest shareholder have requisitioned an extraordinary general meeting (EGM) next week where they will demand the company’s chairman be sacked.
Hosking Partners owns just under 19 per cent of Flybe and are contesting the cut-price sale of the struggling airline to a consortium that is led by Virgin Atlantic.
The aim of the meeting will be to oust Simon Laffin, who has been chairman at Flybe for five years, after the company agreed to sell up for a discounted 1p per share, according to Sky News.
The fund manager run by Jeremy Hosking, wants to place experienced aviation executive, Eric Kohn, as chairman, in Laffin’s place.
Flybe are expected to confirm the EGM request to the London Stock Exchange as early as Monday morning.
Kohn’s first action would be to lead an investigation into the sale process conducted by the board that resulted in an undercut price.
Hosking wrote to Flybe directors last week accusing them of breaching duties to investors and warning that it could seek an injunction to try to block the deal.
It is unclear whether an injunction is an option still being pursued by Hosking.
At the current sale price, Hosking’s shares are worth £400,000, but with Flybe shares closing on Friday at 3.4p, its market value is £3.7m.
Investors have further reason to be annoyed, with Stobart, one of the members of the consortium, having had a bid worth 40p per share rejected last year.