FIRST Choice shareholders have emphatically rejected the company’s planned merger with Kuoni at least until they know whether Airtours’ bid for their company will be allowed to proceed.
By the first closing date for acceptances of the merger, just 0.6% of those holding First Choice ordinary shares backed the deal – and that figure was bolstered by a Kuoni director holding First Choice shares.
Meanwhile, just 0.09% of those holding First Choice convertible preference shares voted for the deal.
The figures compare with Airtours’ announcement nearly four weeks ago that 44% of those holding First Choice ordinary shares backed its takeover bid for the company.
City sources claimed the level of support for the First Choice/Kuoni merger was “embarrassing” for the First Choice management, which has backed the deal.
But a spokeswoman for First Choice said the figures were not surprising in the current climate of uncertainty and the deal was still alive.
“You don’t normally accept at the first closing date,” she said. “You keep your options open. In any case, First Choice advised shareholders not to do anything at this stage and that is exactly what has happened.”
The deadline for acceptances has been extended to May 31, but a further extension is likely as shareholders will not know by then whether the European Commission has given Airtours the green light to proceed with its offer. The EC is set to make a decision on June 3.