Thomas Cook controlling stakeholder may sell shares
Ferry Online Travel News 02/10/2008
Thomas Cook's controlling shareholder may sell off part of its 54 per cent stake to complete a financing deal.
Arcandor, the German group that owns department stores and mail-order businesses, as well a majority share of travel giant Thomas Cook, released a statement last week indicating that it may be forced to sell off some of its holdings.
Net liabilities of €1.5 billion were reported by the group on 30 June, when it reported that it "would like to clarify that in connection with the currently agreed financing structure it is still reviewing its holding structure, including the possibility of raising funds by reducing the level of ownership in Karstadt and Thomas Cook."
The admission that a reduction in its shareholding in Thomas Cook might be necessary has followed several denials by Arcandor regarding its need to sell off some of its assets. Investors reacted negatively to the news, with the stock price falling by around 30 per cent.
Thomas Cook stock also tumbled as analysts warned investors that the group may be ready to place a large number of its shares in the travel company.
Arcandor has reported that it is involved in a refinancing deal with a consortium of banks that includes Bayern LB, Dresdner Bank and the Royal Bank of Scotland.
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