TUI Travel comes clean on TUI AG talks

16th Jan 2013
TUI Travel comes clean on TUI AG talks TUI Travel could merger with its larger German parent

It has been a long time coming, but directors at TUI Travel have finally confirmed they are in discussions with TUI AG about a possible merger of the two organisations.

The larger German organisation already owns 56 per cent of TUI Travel, with a deal potentially seeing the organisation acquiring the outstanding stock.

In a statement earlier the independent directors of TUI Travel said: “TUI Travel has recently received an approach from TUI AG which may or may not result in a combination of the two companies. 

“Discussions are at a very early stage, but are on the basis that any such combination, if effected, would be achieved not by a reverse takeover but by means of a nil premium all-share merger.”

It is thought a combination of the two companies could create synergies of over €500 million.

The statement added, in according with the City Code on Takeovers and Mergers, TUI AG is required to either announce a firm intention to make an offer for TUI Travel or announced that it does not intend to make an offer by 17:00 on February 13th.

Shares in TUI Travel rose by four per cent following the statement.


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