Flybe looks set to be rescued but only if investors agree to a wipe out

A consortium including Virgin and Stobart have put up just £2.2m for Flybe shareholders. But as James Moore explains, some investors may be disinclined to let the deal be completed

Will Flybe investors clear rescue deal for take off? (Reuters)

Flybe, Europe’s biggest regional airline, has been sold for what amounts to a packet of Toffos and some small change to Sir Richard Branson and his pals after a quick whip round.

The troubled carrier was publicly put under the auctioneer’s hammer last year, and the shares flew off their 10p floor when it emerged that Sir Richard’s Virgin Group was interested in buying the thing, soaring to 16p.

With big institutional investors heading for the exit, I understand quite a few retail investors took a punt on the stock in the hope of getting a business class deal. What they’ve been offered isn’t even cattle class.