City speculates on £2.5bn MyTravel takover
The City was rife with speculation yesterday about a possible £2.5 billion takeover of MyTravel as the group’s shares rose before falling back again.
Rumours centred on First Choice being in the frame to bid for Airtours parent MyTravel – ironic given that the reverse was the case prior to MyTravel’s well documented financial woes of four years ago.
TUI was also talked about being in the frame for MyTravel, which has seen recovery following a financial restructuring. TUI was also being linked with a move for First Choice.
First Choice shares were up 8.5 to 223.5p yesterday with MyTravel ending the day up 2.5p to 240.5p.
Industry insiders do not see the sense in First Choice moving away from a strategy of developing higher earning specialist areas such as adventure holidays.
However, it has long been thought that the so-called Big Four UK tour operators – TUI, Thomas Cook, First Choice and MyTravel – are prime candidates for consolidation particularly now they face increasing competition from no-frills airlines and online travel firms which have far lower cost bases.
Both MyTravel and First Choice announce interim results in two weeks time.
Report by Phil Davies
Phil Davies
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