Thomas Cook rallies after rejection of rescue package
17 Mar 2012
Thomas Cook shares were up 7 per cent today following a report of its rejection of a £400-million rescue package.
That the ailing travel operator could afford to reject the rescue offer was seen as sign of confidence by traders, who pushed the shares up seven per cent by 1.8p to 24.6p.
The offered deal by former Airtours executive Terry Fisher and Clive Jacobs, the founder of car rental business Holiday Autos, was said to have had the support of major shareholder Invesco.
However, the plan, which would have had part funding with the veterans' own money, was turned down by chairman Frank Meysman and is now understood to have been withdrawn altogether.
The group, which boasts 1,300 outlets, recently said its turnaround plan for the UK business was progressing, and it included focusing on fewer and better-quality hotels.
According to analysts, investors were excited by the prospect of renewed interest in the company. The shares were trading at £24.
The travel company was seen to be struggling in recent months reporting pre-tax losses of £157.7 million in the three months to 31 December as against £99.3 million in the previous year.
The company also announced Thursday it planned to put up its Indian business for sale.
(Also see: KKR, Carlyle Group join race for Thomas Cook (India): report)
