Thomas Cook shares take off on Fosun bid approach

A Thomas Cook airplane takes off at the airport in Palma de Mallorca, Spain July 28, 2018. — Reuters pic
A Thomas Cook airplane takes off at the airport in Palma de Mallorca, Spain July 28, 2018. — Reuters pic

LONDON, June 11 — Embattled travel company Thomas Cook yesterday said it had received a takeover approach from Chinese tourism group Fosun for the British group’s tour operator business, sending its shares surging.

“Thomas Cook confirms that it is in discussions with Fosun following receipt of a preliminary approach,” said a brief statement.

Shares in the highly indebted Thomas Cook surged 20 per cent to 19.3 pence having tumbled during the previous month on fears over its future.

Thomas Cook in May revealed that first-half losses widened on a major writedown, caused in part by Brexit uncertainty that has delayed summer holiday bookings.

The company is also looking into a possible sale of its airline business. — AFP

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