Karstadtquelle's Thomas Cook, MyTravel confirm merger UPDATE |
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Mon, 12 Feb 2007 09:04
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(Adds further detail)LONDON (AFX) - Package tour operators MyTravel Group PLC of Britain and Germany's KarstadtQuelle's Thomas Cook confirmed they are to merge, and indicated the enlarged group will continue to look for deals in the UK.Following the deal, KarstadtQuelle will own 52 pct of the group and MyTravel the remainder. The transaction will be effected through the creation of a new company, which will buy the two businesses.The groups predicted the move would generate 'significant value for shareholders', and forecast annualised pretax cost savings of 75 mln stg.The groups see the merger completed by June 2007. The deal is conditional on the approval of MyTravel shareholders, competition clearances and the sale of Lufthansa's 50 pct stake in Thomas Cook to KarstadtQuelle.That deal is also conditional on EU anti-trust clearance, and the approval of airline's supervisory board.The parent company of the enlarged Group will be named Thomas Cook Group PLC, headquartered in the UK and listed in London.'This transaction presents MyTravel and Thomas Cook with the opportunity to lead sector consolidation in the UK,' the groups said in a statement.Both groups have been talking to First Choice Holidays PLC about the acquisition of the British company's mainstream business, valued by analysts at about 500 mln stg.Thomas Middelhoff, CEO of KarstadtQuelle and chairman of Thomas Cook, will chair the enlarged business. MyTravel's Michael Beckett will be deputy chairman.On an interim basis, the two businesses' chief executives, Peter McHugh of MyTravel and Manny Fontenla-Novoa of Thomas Cook, will jointly hold the position. McHugh will stay until the end of the year.MyTravel and KarstadtQuelle have agreed not to pursue any competing transactions, the companies said.amy.brown@thomson.comab/tc/ab/nesCOPYRIGHTCopyright AFX News Limited 2006. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited
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Karstadtquelle's Thomas Cook, MyTravel confirm merger 