EasyJet in talks to buy rival budget airline Go

Low-cost British airline easyJet has said it is in exclusive talks with 3i to acquire the rival budget airline Go from the venture capital company.

EasyJet said it's been forced to make the announcement as it's become aware of a leak.

It says the negotiations are at an "advanced stage".

The no-frills airline says the acquisition would be part of its strategy to consider all chances of expansion in the European short-haul market.

It says that, since September 11th, these opportunities have "increased significantly".

But the company said the acquisition will only proceed if it's in the interests of shareholders, staff and customers.

Go was spun out of British Airways last year via a management buyout, which was backed by venture capitalists 3i.