Tui AG has announced is does not intend to make an offer for the portion of FTSE-listed Tui Travel which it does not currently own.
On January 16 Tui Travel announced to the City that it had had an approach from Tui AG, but in an update today it said Tui AG has confirmed that it does not intend to make an offer for Tui Travel.
An offer could have resulted in a combining of the two companies, something that has been the subject of speculation for a number of years, but that appears to be off the cards.
Reports of ‘early talks’ between the sides earlier this month saw Tui Travel’s share price rise above 300p before falling back down again.
Tui AG owns 56% of Tui Travel having set up the company in 2007 following the merger with First Choice.
Travel Weekly reported last August that Tui AG was considering buying part of the Tui Travel business. At the time a Tui AG spokesman said: “It has been known for some time we are considering several options.”