Stella Travel Services worldwide chief executive Keith Stanley has refused to confirm fresh rumours the group is poised to announce a multi-million pound deal to buy Advantage.
Rumours hotted up again this week that a deal between Stella, which operates 736 Harvey World Travel and Global Travel Group agencies in the UK, and the Advantage consortium, will be struck within weeks.
Advantage is valued at about £6 million but it is thought any deal will involve a significantly higher sum and a considerable commitment to marketing. Any proposal would require approval by 75% of members.
Stanley stressed talks with Advantage centred on a broader product agreeement, but did not go as far as an outright denial of the deal.
He said: “We are not buying them at the moment. I would love to, but we are working more closely with Advantage to meet their product needs.”
He added: “If there are acquisitions that fit our strategic plan we are happy to take their call. We are not actively looking.”
Any deal that increases the value of parent company Stella Group is likely to be welcomed by majority shareholder and private equity firm CVC Asia Pacific, which could float the business in three to seven years. “The higher our value the more it gains,” said Stanley.
Advantage chief executive John McEwan also denied a deal was discussed at this week’s Advantage board meeting. “The discussion with Stella is around product diversification,” he added.