Thomas Cook shares soar on takeover rumours from US, Swedish, and Chinese firms
Shares in Thomas Cook (TCG.L), one of the most iconic names in British travel history, are soaring in early trading, following rumours that it has been tentatively approached about a takeover.
The stock price of the group, which has a market capitalisation of nearly £500m ($649m) jumped over 14%, after Sky News reported that the takeover talks centre around its tour operating unit, as well as the entire company.
The Sky News report over the Bank Holiday weekend said that it is unclear at what stage the talks are at but that any deal would likely take months to complete. The media outlet said that US private equity firm KKR & Co and Swedish buyout group EQT Partners were the potential bidders for Thomas Cook and that China’s Fosun International also pipped preliminary interest in the tour business.
Thomas Cook has encountered a range of issues over the last year, leading to job cuts, store closures, and putting its airline business up for sale after a heat-wave in northern Europe last summer put holidaymakers off last-minute deals. This led to two profit warnings.
