22nd Nov 2013 10:59
LONDON (Alliance News) - Norwegian shipping magnate John Fredriksen is increasing his shareholding in Europe's largest tour operator TUI AG to more than 20% and simultaneously selling his entire stake in its TUI Travel subsidiary, Reuters reports citing his aide Tor Olav Troim.
Reuters quoted Troim saying that not only had Fredriksen made money with the deal on Thursday, he had strengthened his influence in TUI AG should he decide to renew efforts to merge the two companies.
"Our goal is to create an integrated tourism group. A merger of TUI AG and TUI Travel Plc is an option", he told Reuters.
Fredriksen and Russian tycoon Alexey Mordashov, who owns 25% in TUI AG, had earlier this year discussed a possible nil-premium, all-share merger of TUI AG with its majority-owned unit TUI Travel to cut costs and strengthen its focus on tourism, Reuters added.
TUI Travel shares were down 5.4% at 3684 pence Friday morning, the biggest decline on the FTSE 100.
By Steve McGrath; stevemcgrath@alliancenews.com; @SteveMcGrath1
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