Is Thomas Cook interested in First Choice package holiday business?

Thomas Cook is reportedly examining First Choice’s mainstream package holiday business as competition for the $984.3 million unit takes off, the Sunday Telegraph newspaper reported.

It is being said that Thomas Cook had held talks with banks and was now expected to appoint advisers for formal takeover discussions. Its also been reported that Thomas Cook was expected to begin formal takeover discussions with First Choice shortly.

On its part, First Choice is in preliminary talks with a number of interested parties over a sale of its main package holiday business.

The Times reported: “Thomas Cook yesterday refused to comment on any potential interest in First Choice. However, reports of a possible offer to First Choice come as the German group is itself undergoing far-reaching changes. Its joint parents, KarstadtQuelle, the German retailing group, and Lufthansa, the country’s flag-carrying airline, are in the throes of negotiations over its future.” It added: “Thomas Middelhoff, KarstadtQuelle’s chief executive, is believed to be keen to acquire the 50 percent of Thomas Cook presently controlled by Lufthansa. Travel industry observers suggest that such a change in Thomas Cook’s ownership could help to pave the way for a successful acquisition of the First Choice package tour business. KarstadtQuelle may face a tough struggle to secure the First Choice operations against rival bidders, however.”