| Journal: TWUK | Section: |
| Title: | Issue Date: 19/06/00 |
| Author: | Page Number: 3 |
| Copyright: Other |
Non-core business
Thomas Cook considers sale of finance arm
THOMAS Cook will consider offers for its financial services division after admitting it is no longer part of its core business.The operator is keen to focus on travel and has received approaches, believed to be from banks and private equity groups, for its financial arm.
It has been valued by analysts at £300m.
A Thomas Cook spokeswoman said it would look at obtaining a partner for its financial service division or, if the price was right, selling it off completely.
Finance director Alan Stewart said : “They are very different businesses heading in different strategic directions.”
Thomas Cook’s financial business, which is run independently from the travel division, used to contribute 50% of the company’s profits but now represents only around 20%.
The financial services operation includes its on-line international foreign exchange business, and the travellers’ cheques operation which has been steadily hit due to the increased use of credit cards. Preussag’s decision to ditch Thomas Cook in favour of Thomson could open the way for a sale.