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City File: Airtours hovers over Owners Abroad

Saturday 05 December 1992 19:02 EST
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WHAT'S going on at Owners Abroad, the tour-operating company? We may find out tomorrow. That's what many in the stock market believe anyway. On Friday, the shares climbed 4p to 76p on talk of a takeover bid from either Airtours or LTU, the German group that owns Thomas Cook. The rumours alternatively have LTU making an agreed partial bid. Several months back, OA announced it had received a tentative approach but then let it be known in the stock market that the talks were off. Since then they seem to have resumed.

The trouble for OA of doing an agreed deal with LTU is that it could spark a hostile bid from Airtours, which has figures due out tomorrow. Airtours is known to want to bid, if the Monopolies and Mergers Commission would allow it.

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