Shares in Thomas Cook fell further on the London Stock Exchange yesterday following Tuesday’s profit warning.
Europe’s second largest travel group saw the value of its shares drop by 15.57% to 71.30p.
The fall left Thomas Cook valued at below £700 million, less than one third of its value a year ago, leaving it vulnerable to a buyout. Analyst Morgan Stanley suggested the group would be in “a tough discussion with its banks”.
In a comment for Travel Weekly, City broker Andrew Monk of VSA Capital suggested the company could be broken up.
Rival Tui Travel continued to be dragged down by City concerns about the state of the holiday sector, its share price falling by 4.70% to 192.50p.
Thomas Cook said on Tuesday that profits had been hit by the turmoil in the North Africa and the Middle East and economic weakness in the UK.
After losing almost 30% of its share price on Tuesday, the group’s shares dropped a further 3.4p to 84.45p on Wednesday – the lowest level since it was created by the merger of Thomas Cook AG and MyTravel in 2007 – and declined further yesterday.