Thomas Cook agency set to dump stake on market
A STAKE of almost 50 per cent in Thomas Cook, Europe’s second largest travel agent, is expected to be dumped on the market this week.
The 43.9 per cent stake belonging to insolvent German department store owner Arcandor had been used as collateral against €1.5bn (£1.3bn) in credit from German banks Bayern and Commerzbank and RBS.
But since its collapse Arcandor’s creditor banks are placing the stock to recoup value.
The much rumoured stock sale has already generated significant interest and it is believed there are already potential bidders lined up.
It is believed the stock will be placed at a small discount to its current price of 229p.
Arcandor, which was founded in 1881, was forced to file for insolvency in June when requests for state aid failed.
Uncertainty over the stock sale and future of the company after Arcandor collapsed has weighed heavily on the share price since June.
The banks initially sought a sale to private equity or Rewe, Germany’s third biggest tour operator, which could have triggered a bid for Thomas Cook due to the group’s synergies.
Thomas Cook chief executive Manny Fontenla-Novoa publicly favoured a sale to Rewe and had said such a deal would be “logical”.