FIRST CHOICE TO BID FOR MYTRAVEL

grharrison

I think the main attraction to any suitor must be the core (UK) business and the synergies that would flow. FCD, TUI or TCAG being the three that would fit the synergy criteria. North American Ops could be sold off, but the main problem (I believe) for any potential bidder for the group is what to do about Germany (FTI). Were it not for the German operation, I'm fairly sure a bid for the group would have been forthcoming by now.

Regarding First Choice bidding; Certainly a grossly overvalued tour operator - a P/E of 35 is ridiculous. But the market is wakeing up, albeit slowly. FCD maybe able to swap it's paper with MT equity holders (though they'd better hurry) but you also have a minority interest (often forgotten)that would need to be paid for. This stands at £ 209.5m, and I'm sure is controlled by Crossland via a Guernsey registered company, in which case he could insist on a cash settlement for the interest. This cash requirement, I believe, rules out a bid from FCD.