News Column

TUI'S COMPANY

August 3, 2014



Tui Travel, the owner of Thomson Holidays, is in the process of being bought by its majority shareholder, Germany'sTui AG. For some reason, the deal has inspired a lot of jokes about towels and sun loungers.

It may be difficult to avoid a few more of those this week when the UK company, formed in 2007 through the merger of First Choice holidays and Tui AG's tourism business, gives the City a trading update. Investors will also be asking about the current status of the takeover, as the deal's timetable has so far been proceeding at a laid-back, holiday pace. Anyway, the City is expecting some cheery numbers, with the World Cup possibly distorting the timing of bookings, and the late Easter boosting reported profits.

Analysts at Jefferies reckon: "A good performance in the lates market could provide positive upside, against soft comparatives, which would be welcome given the negative foreign exchange outlook."

All of which makes the deal and the trading sound solid, if rather unexciting. No German stereotype gags there, then.



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Source: Observer (UK)


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