30th Jun 2014 06:19
LONDON (Alliance News) - TUI Travel PLC Chief Executive Peter Long cast aside earlier doubts about the UK tour operator's merger with German parent TUI AG because its 54.5% majority owner has become a better-run company, according to Financial Times report Sunday.
TUI AG on Friday said it will buy the remaining 45.5% of TUI Travel in an all-share deal worth about GBP2 billion, a move that ends years of speculation that TUI AG would eventually take full control of TUI Travel.
The merged entity will have two chief executive officers - both TUI Travel's Peter Long and TUI AG's Friedrich Joussen - up until February 2016, after which Long will become chairman of the supervisory board, and Joussen would lead solely as CEO.
According to the report, Long will Monday begin trying to convince TUI Travel shareholders of the merger's value. However, the FT said that in March the CEO had said: "Bluntly, it won't happen."
"There is far greater clarity within TUI AG,? said Long, according to the FT's report Sunday. ?Under Fritz?s leadership, it?s very businesslike."
FT said Long denied that he had clashed with Joussen's predecessor, Michael Frenzel, or that he was opposed to teaming up with TUI AG.
"I?ve never had an issue about the combination. It is very logical and compelling,? he said.
TUI Travel was formed in 2007 after TUI AG agreed to merge its travel business with First Choice Holidays PLC of the UK. At that time, TUI had a 51% stake in the combined company while First Choice shareholders owned 49%. Since then, analysts have speculated that TUI would one day buy out what effectively became its British travel unit.
http://www.ft.com/cms/s/0/f6bbdaf4-ff98-11e3-9a4a-00144feab7de.html#axzz366ALhwA8
By Samuel Agini; [email protected]; @samuelagini
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
TUI.L