| Journal: TWUK | Section: |
| Title: | Issue Date: 22/05/00 |
| Author: | Page Number: 74 |
| Copyright: Other |
I’m just in two minds over German policies
If there’s one thing I’ve learned from all this takeover business, it’s never believe a German tour operator.Well, you can’t believe C&NTouristic or Preussag, anyway.
Last month, C&Nchief executive Stefan Pichler told us he had ruled out an immediate move into the UK (Travel Weekly April 3). A week later he’d had a remarkable change of heart and made an offer for Thomson.
Then, Preussag chief executive Dr Michael Frenzel said Thomson was too expensive at £1.45bn and he wasn’t interested in the company.
Again, a remarkable about turn and suddenly Thomson is a bargain at the £1.8bn his company is paying for it.
A friend of mine who works on a German newspaper told me this was quite normal practice but it wouldn’t happen over here.
For example, Airtours chief executive Tim Byrne will usually try to give you a straight answer but sometimes chooses not to comment on events.
But he wouldn’t say “we are not interested in C&N” a week before making a bid.
We don’t like being made to look stupid and we have ways of getting our own back but in any case the policy already seems to be backfiring.
Preussag shareholders have asked why such a lot is being paid for Thomson and in two days the German company’s share price dropped by 11%.
And what conclusions can observers and employees of Preussag and Thomson draw from these changes of direction?
Frenzel has said the deal was not personal against arch-rival C&N and that he changed his mind after a meeting with Thomson chief executive Charles Gurassa and his team.
He also said the current team will be kept on and left to manage, with no direct rule from Germany.
I’ll leave you to draw your own conclusions.
Frenzel: decided Thomson was worth a fortune after a chat with the management