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Germany's TUIfly denies plans for takeover by EasyJet

EasyJet already became the first UK carrier to activate a contingency plan after the June 23 vote to leave the EU

German carrier TUIfly on Friday sent a letter to its employees denying any plans for a takeover by EasyJet, hours after a board member said talks were ongoing about a possible sale to the British airline.

"A cooperation with EasyJet or its participation in TUIfly is neither being prepared nor sought after," said the letter seen by AFP.

The denial came after Martin Locher, an employee representative on TUIfly's supervisory board, told reporters in Frankfurt that talks between the airlines had been going on "for some time".

All eyes were already on the two companies after German business weekly Manager Magazin on Thursday said EasyJet was eyeing TUIfly as it seeks ways to keep flying freely within the European Union following Britain's decision to quit the bloc.

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EasyJet chief executive Carolyn McCall had ruled out takeovers just a few months ago, the magazine reported, but had apparently changed her mind following the Brexit vote.

"The speculation in Manager Magazin and in the market is unfounded," TUIfly chairman Henrik Homann and managing director Jochen Buentgen stressed in their letter.

An EasyJet spokeswoman told AFP that the company does not comment on speculation.

Shares in EasyJet closed down 1.2 percent at 1,034 pence in London.

Acquiring an airline like TUIfly could allow EasyJet to secure a foothold in the EU and escape ill effects as Britain quits the economic bloc.

As an EU member, British airlines have until now been covered by the EU's Single European Sky system, which lifts trade restrictions on airlines with their headquarters inside the 28-member union.