TUI Merger ‘Could Well’ Fail, Commerzbank Says
2014-06-30 12:42:41.555 GMT
By Richard Weiss
June 30 (Bloomberg) -- Merger between TUI Travel and parent
company TUI AG faces “plethora of concerns” from TUI Travel
shareholders, analyst Johannes Braun says in note.
* 75% of TUI Travel minority shareholders accepting deal is
“major hurdle”: Commerzbank
* TUI AG must persuade TUI Travel shareholders to swap
“highly successful, asset-light, pure-play tourism
shareholding with a very strong management track record”
into what seems to be “asset-heavy German tourism
conglomerate with an unproven management and (still)
exposure to container shipping” without premium
* Deal could add EU3 per share to TUI AG price target of EU12
* Commerzbank keeps rating of stock at hold.
For Related News and Information:
Top Stories:TOP<GO>
Stories on Germany:TOPG<GO>
To contact the reporter on this story:
Richard Weiss in Frankfurt at +49-69-92041-287 or
rweiss5@bloomberg.net
To contact the editors responsible for this story:
Benedikt Kammel at +49-30-70010-6230 or
bkammel@bloomberg.net
Kim McLaughlin
2014-06-30 12:42:41.555 GMT
By Richard Weiss
June 30 (Bloomberg) -- Merger between TUI Travel and parent
company TUI AG faces “plethora of concerns” from TUI Travel
shareholders, analyst Johannes Braun says in note.
* 75% of TUI Travel minority shareholders accepting deal is
“major hurdle”: Commerzbank
* TUI AG must persuade TUI Travel shareholders to swap
“highly successful, asset-light, pure-play tourism
shareholding with a very strong management track record”
into what seems to be “asset-heavy German tourism
conglomerate with an unproven management and (still)
exposure to container shipping” without premium
* Deal could add EU3 per share to TUI AG price target of EU12
* Commerzbank keeps rating of stock at hold.
For Related News and Information:
Top Stories:TOP<GO>
Stories on Germany:TOPG<GO>
To contact the reporter on this story:
Richard Weiss in Frankfurt at +49-69-92041-287 or
rweiss5@bloomberg.net
To contact the editors responsible for this story:
Benedikt Kammel at +49-30-70010-6230 or
bkammel@bloomberg.net
Kim McLaughlin