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Those who say "THE BOD MUST SWITCH" are forgetting that there is a contract between Flybe and Connect.

With completion due on Friday, I suspect the conditions in that contract have now been satisfied.

Si if Flybe do not complete on the contract, they'll be sued by Connect for breach of contract.

I'm sure this is also the advice the BOD is receiving from its advisers.

...to gatecrash now: if the conditions in the asset sale agreement have been satisfied, Flybe can't just walk away from it without the threat of bring sued by Connect for breach of contract. Would anyone really want to acquire Flybe with that additional threat hanging over it?

This new offer does however strengthen the case for compensation to the original shareholders for the bargain-basement sale. Perhaps that's the real reason why Hoskings like it.

stew - it's the exact opposite: if the BOD accept this offer, they will be MORE vulnerable to shareholders who they've already damaged.

The Flybe/Connect advisers will obviously also be pouring cold water on the new offer.

If there is no RNS from Flybe dismissing the approach, the shares will obviously open up tomorrow, but with the proposal to inject £65m of equity at 4.5p into a company with a mkt cap of just £3m, and with this new offer still being conditional on the Virgin deal not completing, 3p will be the ceiling I would think. Depending on what happens next, it will then stay at that level for the rest of the week, or crash back down to 1p.

The problem for Flybe, is that if they do switch, it won't undo the damage they've already done to shareholders, so it won't stop them being pursued in the courts. On the contrary, it will strengthen the case for compensation, and it will also give the company the resources to pay it.

basic - just from the RNSs.

Tav - Hoskings haven't sold because they need to push through the Kohn appointment.

The guy who bailed out (at 1.3p) only bought them a week ago (at 2.1p). That's a £23k loss - ouch!

Tav - you think we could get something from Hoskings/ Tinkler in the next day or two?

But they can't make a counter offer, because it's an asset sale outside the control of the shareholders, so everyone else has been locked out.

The only thing that could stop it is an injunction, the chance of which has all but vanished. In fact there's more chance of the deal not completing at all - but that again is extremely unlikely at this point, and would not in any case get Flybe etc off the hook, because the damage to shareholders at 11Jan has already been done.

Tav - but mere rejection by the shareholders of the 1p offer for the plc from Connect will save Connect £2.2m.

The plc won't need to be put into administration for this saving to be made, and it would not be appropriate to do so, because it won't be insolvent.

The BOD have only said that they intend to wind up the company, but that will take time, and shareholder approval.

Tav - what makes you think the directors could put the plc into administration? The sale to Connect will give the plc enough cash to pay its debts. If that were not the case, it would already be insolvent.

It's difficult to see what he could do here to get his own back.

The question of whether or not the sale of the Flybe business goes ahead by 22 Feb is in the hands of the contracting parties (unless there is an injunction, which seems extremely unlikely at this stage, either to happen or to succeed).

Tinkler's last move was just to come up with a lifeline for Flybe, in case the consortium bid fell through.

Tav - and many more facts will come to light.

For example, they've tried to say the structure of the deal had to be suddenly changed between 11 Jan and 15 Jan. Well, there wasn't time to prepare the documentation from scratch in that time-frame (I speak advisedly). It was drafted before 11 Jan. It was all pre-planned.

In fact, I'm sure the Kohn investigation will show that the consortium were ready to make their offer - at a much higher level than 1p no doubt - in December, but one thing held them back, namely having to wait for the standard listing to kick in, because that was an essential part of the strategy. It is no coincidence that the Virgin RNS of 19 Dec re-confirming their interest was not made until after the crucial EGM vote on 14 Dec on which it was dependent.

They then put a bit of time between the EGM and the offer on 11 Jan in the hope that no one would notice that there might be a connection between the two.....

Hoskings will organise the class action in due course. In the meantime, I have emailed them (contact details on their website) to confirm my support of their action, and my willingness to join a class action. I recommend others do the same.

By the way, if you've sold your shares already, it makes no difference, you'll still have a claim, reduced only by what you received for your shares in the market. Hoskings haven't sold, but that's only because they need to retain some influence, to ensure the chairman is replaced etc. The fact that they haven't sold, and stand to get only 1p or less for their shares, is a good sign: it means they feel they have a very strong legal case to recover a much greater amount.

YoungLee - shareholders as at 8am on 11 Jan will need to join Hoskings in a "class action" in order to get compensation automatically.

Buyers of the shares since that moment won't get any compensation of course: they have no complaint, they are buying at the current market price.

The closing price on 10 Jan, around 16p.

Compass, you don't seem to understand the basic structure of the deal, as Leisurelad points out. Also:

- Hoskings won't need to go as far as to prove criminal negligence to win damages.

- As for the conspirators' teams of legal advisers, they are human, and well capable of slipping up especially when under time pressure.

- As regards who would pay, the there are all sorts of possibilities including following the assets into the consortium and claiming under Directors Liability Insurance policies.

There ARE reasons to be cheerful!

Hoskings are obviously still holding because it means they retain significant influence, in particular re Kohn's appointment, which advances their main objective, namely to sue for damages.

If they didn't believe they had a strong case, they would have sold a long time ago, at 4p+.

And as time goes on, more and more incriminating evidence is coming out of the woodwork....slowly slowly, catchee monkey....

So I feel very optimistic about shareholders recovering their losses - and you can't compare the bodged takeover of Flybe with corporate failures like Carillion and others. The Flybe transaction was one tainted by conspiracy, misinformation, disinformation, concealment, dirty tricks, incompetence, stupidity and wide-ranging cock-up: hence, a much bigger target for regulators and litigation lawyers to aim at.

962, Connect will not be publicly traded, it'll be owned by Virgin, Stobart etc

Gerry, thought it might be different for Flybe, because it will become a subsidiary of the consortium, if the deal goes through.

If so, maybe an action group website could be set up?

If it goes through, that will be the end of this BB! Another reason to vote it down!