Tui Travel’s share price rose yesterday amid City speculation that German TUI AG could be preparing to buy out the remainder of the shares in the company that it does not already own.
TUI AG currently owns 54% of Europe’s largest tour operating group headed by chief executive Peter Long.
The German conglomerate has interests in container shipping businesses Hapag-Lloyd which is seen as being non-core and which it has been looking to dispense of for some time.
Analysts said improvements in the cargo shipping sector could enable TUI AG to exit from Hapag-Lloyd sooner and for more value than has previously been expected.
TUI AG sold a majority stake in Hapag Lloyd and any revenues from selling its remaining share in the business have been expected to be spent buying up the remaining shares in Tui Travel plc.
Leading leisure analyst Jamie Rollo at Morgan Stanley was quoted as saying: “Exiting the non-core shipping business as rates approach a cyclical high and reinvesting in the core tour operating business when multiples are fairly depressed could be astute.”