HispanicBusiness

SHARES in troubled travel giant Thomas Cook surged yesterday as markets welcomed the prospect of a refinancing deal and news of a three-strong shortlist of bidders for its Indian business.On Monday, while the markets were closed, the travel operator confirmed it was in "advanced discussions" with lenders, including Royal Bank of Scotland and Barclays, over a package expected to extend the maturity of its loans to 2015.Reports emerged yesterday that three bidders were interested in snapping up its India-based travel agency - US venture capital firms Carlyle Group and TA Associates, as well as a third un-named contender.

The travel firm has been suffering
since November, when it admitted the impact of the economic slowdown
in western Europe and the Arab Spring uprisings were having on its
trading, forcing it to go cap in hand to its lenders.Thomas Cook
shares tumbled below 10p at the end of last year but last night
closed up 13.4 per cent at 23.25p following confirmation of talks
with the banks over its GBP1.2 billion debt pile.But the deal is
expected to come at a price as the banking syndicate is expected to
demand higher interest charges, more one-off fees and a 5 per cent
share stake.The group is also exploring the sale and leaseback of
aircraft, as well as offloading Thomas Cook India. Sale of the
Indian business could raise GBP120 million, while it is expected a
deal to sell up to 20 aircraft could raise at least GBP150m, pushing
total proceeds from disposals to GBP450m. Analysts at Investec
maintained the broker's "buy" recommendation and 30p target
price.But Simon French, of stockbroker Panmure Gordon, remains
unconvinced and has kept his "sell" rating on the stock, as well as
a 10p target price. "The key issue is that, even after these steps,
the group has too much debt and too little operating cashflow," he
said.Talks involving the banks and interim chief executive Sam
Weihagen are likely to be completed in the coming weeks, with a
strategic review due to be announced by the time of its interim
results before the end of May.Weihagen has been interim chief
executive since the abrupt exit of Manny Fontenla-Novoa last August.
Frank Meysman, who became chairman in October, had said that he
hoped to name a replacement by the end of March, but there has been
no announcement.The sale of the Indian unit could be announced as
early as the first week of June.Thomas Cook said in February that it
planned to sell down its 77.1 per cent stake in the business, which
provides foreign exchange and travel services in 70 Indian cities
across 153 owned locations. The company employs 2,700 people across
its Indian offices.Carlyle has made a number of investments in
global travel services, including CVC Brasil Operadora e Agencia de
Viagens, Latin America's largest tour operator in 2010 and
Worldstrides, a student travel specialist in 2011.