Yahoo Finance Huge Chinese company poised to rescue major UK tour operator Thomas Cook
Troubled travel operator Thomas Cook (TCG.L), one of the most iconic names in British travel history, is poised to be saved by its largest shareholder, Fosun.
The group
are soaring in early trading, following rumours that it has been tentatively approached about a takeover.
The stock price of the group, which has a market capitalisation of nearly £500m ($649m) jumped over 14%, after Sky News reported that the takeover talks centre around its tour operating unit, as well as the entire company.
Troubled travel company Thomas Cook is in £750m rescue talks with banks and its largest shareholder, Fosun.
The measures, which have not been finalised, would see the Chinese investor buy the firm's tour business.
Thomas Cook's chief executive, Peter Fankhauser, said the proposal was "not the outcome any of us wanted" but insisted it was "pragmatic".
The cash injection will give the group enough money to trade through to the end of next year and invest.
The travel agent launched a strategic review earlier this year but since then, it said, the European travel market has become "progressively more challenging".
That has hit the firm's finances and made it difficult to sell its airline or tour business to generate some cash.
As a result, the group has been forced to enter into talks with its banks and Fosun, which will own a significant majority of the travel company's tour operator and a large minority stake in its airline if the deal goes ahead.
