EasyJet founder Stelios Haji-Ioannou on Tuesday played down the chances of a takeover attempt of the low-cost carrier by Icelandair, which recently bought more than 10 percent of the British company's stock.

Haji-Ioannou, who with his family owns about 41 percent of the company, also said he would not be interested in selling any of his stake in easyJet to the Icelandic company.

"I don't expect anything too dramatic to happen there," he said at a shareholder meeting for Stelmar Shipping, another company he founded.

He said European Union rules would limit foreign ownership of easyJet at 40 percent.

Haji-Ioannou also said that he has a lot of control over the company, which could prevent a takeover bid. He said he owns easyJet's name, which he licenses to the company, and has the right to be chairman of its board automatically.

"I've been a seller of the stock from time to time, but not at the level it's at now, and certainly not to the stage where I would be anywhere near losing (control)," he said.

Haji-Ioannou said he will know more about Icelandair's intentions after meeting with the company on Wednesday.

EasyJet shares hit an all-time low in late September on concerns about rising fuel costs and falling fares as competition bites.

(Reuters)