Virgin Holidays has emerged as a surprise bidder for First Choice’s mainstream division, according to the Daily Telegraph.
The long-haul tour operator is reported to have teamed up with private equity firms to put together a bid for the business, which has been valued between £500 million and £880 million.
“We are watching events very closely,” a Virgin spokesman confirmed.
Virgin Holidays carried 400,000 passengers last year and First Choice’s mainstream business would complement its long haul product, which is strongest to the US and Caribbean, while also giving it a short haul operation.
Tour operators Thomas Cook and MyTravel are also believed to be interested in First Choice’s mainstream business.