THE European Commission plans to make a ruling on Airtours’ bid for First Choice by June 3, two weeks before the deadline of June 16.
The deal is likely to fall through if the EC orders a more detailed investigation.
The UK government must ask the EC if it wants to become involved in any investigation.
In an unusual move, First Choice revealed its 1999 profit estimate – £60m – in a bid to show Airtours has undervalued the company and to persuade shareholders to support its original planned merger with Kuoni.
Airtours refuted the claim, reiterating it has the backing of First Choice shareholders.
Kuoni is rumoured to have started talks with other European operators about an alliance should the planned merger with First Choice collapse. Kuoni has no plans to improve the terms of its planned merger with First Choice.
See story and Comment