Thomas Cook in rescue talks with China's Fosun – business live

The owner of Club Med is in ‘advanced discussions’ over a
£750m bailout of Britain’s oldest package holiday company

8.26am BST

News of a deal with Fosun has gone down badly with
investors and Thomas Cook shares have hit a record low of 7.5p in
early trading, down 44%.

Under the terms of the deal, the shareholding of existing
investors will be diluted. The sell off also reflects the cautious
tone from Thomas Cook, which highlighted an uncertain consumer
backdrop, “particularly in the UK”. It expects earnings in the
second half of the year to be behind the same period last year.

All future reporting dates, as previously disclosed, are now
under review pending the outcome of the recapitalisation of the
Group. As a result, the third quarter trading update originally
scheduled for 18 July 2019 is cancelled.

7.45am BST

Fosun has issued a statement on its plans to inject
capital and take a bigger stake in Thomas Cook:

Fosun is a shareholder in Thomas Cook, because it is a British
company operating in the global travel industry, in which we have
extensive experience.

We are committed investors, with a proven track record of
turning around iconic brands including ClubMed and Wolverhampton
Wanderers FC.

Source: FS – All-News2-Economy
Thomas Cook in rescue talks with China's Fosun – business live