EasyJet says it has rejected a takeover offer.
The UK airline wouldn't name the bidder.
But a Reuters source says it was European low-cost rival Wizz Air.
EasyJet would only say that the offer fundamentally undervalued its business.
It says the bidder has since said it is no longer interested in a deal.
Now easyJet plans to raise new cash to fund recovery.
The airline says it will raise $1.7 billion from shareholders.
It plans to use the cash to strengthen its balance sheet and seize opportunities that arise from an expected recovery in air travel.
EasyJet wants to steal market share from legacy carriers like British Airways-owner IAG, once a rumoured bidder for the budget airline.
Chief Executive Johan Lundgren says the new money will enable strategic investments.
That could include buying extra landing slots at key airports.
EasyJet shares were down around 10% in early trades Thursday (September 9) following news of the rejected bid.