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Date: Monday 13 Oct 2008
LONDON (ShareCast) - Shares in London-listed TUI Travel were in demand Monday morning on speculation that German holding company TUI might launch a full takeover of the company.
Over the week-end TUI AG sold a two-thirds stake in its Hapag-Lloyd shipping unit for about €2.45bn.
The German company said that the sale gave it strong liquidity and a solid financial position, “opening up investment possibilities for the further expansion of TUI's tourism possibilities.”
One such possibility is taking total ownership of TUI Travel, Europe’s largest holiday company.
At present, TUI AG owns 51% of TUI Travel, the company that was formed by a merger of Thomson Holidays and First Choice Holidays. .