Travel group TUI listens to investors and drops plans of merging with its UK company
Skift Take
The speculation of a merger between the German and UK brands boosted TUI on the stock market, but negative investor feedback has brought the struggling parent company back to the drawing board.
TUI AG retreated from a plan to combine with TUI Travel Plc, in which it owns a majority stake, succumbing to investor pressure to drop a share-based deal only a week after saying the two companies were in preliminary talks.
TUI said a stock bid for TUI Travel would not be in TUI shareholders’ interest, according to a statement today. TUI, based in Hanover in northern Germany, dropped the most in six months. The company is barred by U.K. takeover rules to make a fresh approach for the U.K. company for six months.
“It is unlikely that the TUI Travel board has made any unworkable demands,” JP Morgan Securi
