| Journal: TWUK | Section: |
| Title: | Issue Date: 17/04/00 |
| Author: | Page Number: 1 |
| Copyright: Other |
Thomson warms to C&N approach
German deal
THOMSON Travel Group is expected to accept an offer of between 155p and 160p a share from C&N Touristic after preliminary talks between the two operators ended in deadlock.The German operator is expected to table one last bid after Thomson rejected an improved offer of 145p but suggested a meeting between the company advisers.
Thomson played down the meeting, insisting it was merely intended to clarify why 145p was insufficient.
But the City regarded it as a significant step from chief executive Charles Gurassa who previously refused to speak to the Germans after bluntly dismissing an offer of 130p.
One analyst said: “Last week I would have said C&N would walk away but I believe it’s tilted in favour of an improved offer, perhaps 155p or 160p.” Another added: “Thomson’s tone has become more conciliatory. There is scope for a friendly deal.”
C&N welcomed the talks but insiders said no progress was made.
Gurassa stands to make close to £1m if the company is sold at 160p a share. He has 1.6m share options exercisable at £1. That is in addition to his annual salary of £400,000 and a guaranteed bonus of at least £240,000 this year.
Shareholders backed the second rejection with Woodbridge International Trust, owned by the Thomson family, reportedly increasing its stake again, from 21% to 22.7%.
Meanwhile, this week Thomson will announce its first wave of jobs cuts across its tour operation and Lunn Poly network as part of Gurassa’s plan to streamline the operator.
n See Comment and Analysis, page 8