Thomson warms to C&N approach

 

 

 

 

 

 

 

 

 

 

 

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