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TUI AG backs away from TUI Travel deal

TUI AG backs away from TUI Travel deal

TUI AG has confirmed it will not bid for smaller TUI Travel following an assessment of present market conditions.

TUI AG made the statement in accordance with the UK City Code of Takeovers & Mergers, with the company now banned from launching a takeover bid within six months.

A possible deal would have seen TUI AG, which holds a 56 per cent stake in TUI Travel, take over the reaming stock in a share-based transaction.

However, TUI AG reached a judgment it was not in the interest of TUI shareholders for a ‘share-based transaction’ at current exchange ratios.

Both TUI AG and TUI Travel suffered a share slump following the announcement of a possible deal earlier this month.

TUI Travel said: “Following the announcement on January 16th 2013 which confirmed very early stage talks regarding a potential combination of the two companies, both sides promptly engaged in detailed discussions but failed to reach agreement.