TUI Travel in talks with main stakeholder

Thu, Jan 17, 2013, 00:00

TUI Travel, Europe’s largest tour operator and owner of the Thomson holiday brand, jumped to the highest since April 2010 after it received an approach from its German majority owner to merge the companies.

Talks with TUI AG are “at a very early stage” and “may or may not result in a combination of the two companies,” the tour operator said in a statement. TUI Travel jumped as much as 8.4 per cent and closed up 3.9 per cent at 292.5 pence in London, valuing the company at £3.3 billion.

TUI AG will have to submit a firm intention to make an offer by February 13th, the tour operator said. TUI Travel was formed in 2007 when TUI combined its travel unit with First Choice Holidays to ward off competition from Web travel agents and budget airlines. – ( Bloomberg)