Toll has made a A$5 billion (£2 billion) hostile bid for Patrick Corporation, Virgin Blue’s controlling shareholder. Branson was in partnership with Patrick, but they fell out when Patrick bid for and won majority control of the airline this year.

Branson told The Sunday Times yesterday that he had encouraged Toll to bid for Patrick in February, when Patrick first made a bid to take control of the airline. “They weren’t ready then, but called me six weeks ago and said they wanted to go ahead,” he said.

Branson has agreed to underwrite the purchase of a 15% stake in Virgin Blue from Toll for about £100m should its hostile bid succeed. This would take Virgin’s stake in the airline to 40%, insufficient for voting control. “But I think we will be able to appoint more directors, and the chairman,” he said.

Virgin Blue had to remain majority Australian-owned because of its plans to fly outside Australia under Australian route rights.

Toll had agreed to put about A$30m of freight business a year into Virgin Blue, and make it the carrier of choice for its corporate travel account.

Australian analysts expect the Toll bid to be decided within five to six weeks.

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