Flybe’s biggest shareholder is attempting to block the troubled airline’s cut-price take-over, according to reports.

Hedge fund manager Hosking Partners, which holds a stake of close to 19% in Flybe, could seek an injunction to stop the sale to a consortium led by Sir Richard Branson’s Virgin Atlantic, it is understood.

The initial 1p-a-share deal, announced on January 10, came at a huge discount to the airline’s prevailing share price.

Hosking Partners has raised concerns at whether the £2.2m offer reflected the intrinsic value of the airline, and had blocked a rival offer from emerging at a higher price.

In a statement to the market on Tuesday, January 15, Flybe announced it had had to restructure its deal with Connect Airways, a consortium comprising Virgin Atlantic, Stobart Group and Cyrus Capital Partners.

The consortium will now pay £2.8m to take control of the main trading company Flybe and the online arm Flybe.com in a deal set to complete by February 22, while later completing the purchase of the wider holding company.

It has also offered a revised bridging loan of up to £20m, with £10m released immediately.

Flybe said the revised funding plan ’provides the security that the business needs to continue to trade successfully’ and that the take-over offer will continue as planned.

The airline says it is going ahead with plans to re-open an Isle of Man base on April 1.

And it said: ’Customers can continue to book flights with us. As previously announced, with effect from March 31, Flybe will operate its 2019 summer schedule from the Isle of Man as published with its own-operated 78-seat Bombardier Q400 aircraft.

’Flybe looks forward to continuing to serve the island community and to welcoming customers back on board its own operated flights this summer.’