Talks between Worldchoice and the Travel Trust Association have progressed sufficiently to make a TTA takeover a real possibility, with holders of half the shares in Worldchoice expressing an interest.
The Worldchoice board will decide by the end of the month whether to stick with its long-proposed merger with Global Travel Group, now part of Stella Travel Services, or switch to embrace the TTA.
The association’s holding company TTA 2007 has firmed up its conditional cash offer, made in November, presenting a series of proposals to the Worldchoice board.
TTA director Todd Carpenter declined to comment, but it is believed the association has attracted interest from holders of at least 50% of Worldchoice shares.
Worldchoice chairman Colin Heal said: “Discussions with both TTA 2007 and Stella continue. We hope to make a decision by the end of the month.”
He said the pair offered alternative models for the future of Worldchoice, but added: “There are benefits with both.”
The board’s recommendation will go to shareholders and require 75% support to go through.
Drawn-out discussions on the Global deal, which would have seen the pair combine to form Triton Travel Ltd, have been complicated by Stella’s takeover of Global in November. Australian-based Stella, owned by investment firm MFS, is a major group combining tour operations and retail outlets.
Some Worldchoice shareholders suggested the Stella takeover made the Global deal more attractive. However, it appears there is sufficient interest in the TTA offer to scupper a deal with Stella.
Matters may be further complicated by the prospect that Stella owner MFS could be broken up as the result of a prospective takeover, leaving Stella as a stand-alone business.