11 September 2009

Travel share prices rise after TC announcement

Thomas Cookââ¬â¢s share price closed up 10.8p yesterday at 245p after the threat of a takeover was removed.

The banks speaking for 43.9% of the company announced that they have completed a placing of shares with institutional investors to raise almost Ã&#pound;900 million.

Following the collapse of TC's majority owner, Arcandor, in June, three creditor banks, Bayern LB, Commerzbank and RBS, took control of Arcandorââ¬â¢s 52.8% holding.

Former Arcandor chief executive, Dr Karl-Gerhard Eick, has stepped down as a director and chairman of the board to be replaced by non-executive deputy chairman, Michael Beckett, previously chairman of MyTravel.

Analysts said the sale ends the uncertainty hanging over Thomas Cook about a possible takeover.

Rival TUI Travel also saw its share price rise 15.8p to 272.5p.

By Bev Fearis

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