Airtours bid in balance
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.THE future of Owners Abroad, Britain's second-largest holiday tour operator, hangs in the balance this weekend with institutions evenly split on whether to accept a pounds 294m hostile takeover bid from Airtours or stick with the company.
Sources in both camps acknowledged that the result was going to be extremely close after a number of leading institutional shareholders unexpectedly indicated they would be backing Owners. The offer closes finally on Tuesday.
Thomas Cook, the travel agent owned by Germany's WestDeutsche Landesbank, is believed to be ready to make substantial purchases of Owners shares in the stock market on Monday morning in an effort to block the Airtours offer.
Thomas Cook has already made a tender offer for 12.5 per cent of Owners, conditional on the Airtours offer failing. Thomas Cook's proposed commercial tie-up with Owners would be jeopardised if Airtours won the bid.
Mercury Asset Management, with 15.04 per cent of Owners, has decided to accept the Airtours offer, but a number of other big shareholders, including Phillips & Drew Fund Management with just over 10 per cent and Gartmore with 7 per cent, are believed to have swung the other way.
Howard Klein, chairman of Owners, has being doing a furious round of institutional presentations over the last week in a last-ditch bid to see off the offer.
Many leading shareholders who had been minded to accept the Airtours terms were pleasantly surprised by the strength of the defence and are believed to have reconsidered their position.
Owners claims its tie-up with Thomas Cook will be worth far more to shareholders than the likely cost-cutting benefits of a merger with Airtours.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments