Batt lines up Thomas Cook deal with C&N

Batt lines up Thomas Cook deal with C&N

Report by JEREMY SKIDMORE

CARLSON has emerged as the favourite to strike a deal with German giant C&N Touristic as soon as it completes the purchase of Thomas Cook.

Minneapolis-based Carlson leisure president Mike Batt has already confirmed the company will take up its option to acquire 100% of Thomas Cook within the next two months (Travel Weekly August 21).

Batt is then expected to sell on a stake to C&N to create a powerful three-way alliance between Carlson, Thomas Cook and the German company.

C&N has been holding discussions with several companies but talks have intensified with Batt, who will be keen to recoup a large chunk of his outlay on Thomas Cook and at the same time create a strong player in the market.

One analyst said: “Carlson probably wasn’t the top option for C&N but talks with Airtours and First Choice seem to have hit a brick wall.”

The deal would be a boost for Thomas Cook, which has seen staff morale suffer after German giant Preussag made a shock decision in May to dump its 51% stake in the UK company and take over Thomson at 180p a share. It would also restore Thomas Cook’s presence in Germany and give its tour operation added buying power.

C&N chief executive Stefan Pichler is keen to create a global group after missing out on Thomson but there is a question over how much joint owners Lufthansa and Karstadt are prepared to pay.

A stake in Thomas Cook would be cheaper than its other options in the UKmarket.

Acquiring Airtours would cost C&N at least 400p a share, or around £2 billion. Similarly, First Choice would demand around 250p a share, valuing the group at around £1.1 billion.

Batt was unavailable for comment but another analyst said:”C&N has been talking to everyone and has got a serious decision to make.

“It may well come down to money and a deal with Carlson and Thomas Cook now seems very possible.”

A Carlson deal with Thomas Cook would not include the retailer’s financial services division, which is believed to be up for sale for around £450 million.