Analysts say rise in Cook share value due to takeover talk
Due to persistent rumours of a takeover at Thomas Cook – with Tui a potential suitor – the tour operator giant’s shares have risen in value by 109% since the start of February. However, financial analysts say that the rumours have little basis in truth, although it shouldn’t be ruled out completely.
“I think it’s unlikely, but never say never,” Nick Batram of Peel Hunt said. “It would be tied up with the regulators for god knows how long, and you’d be taking on a lot of debt.”
The increase in the share price is due to market forces, he explained. “Speculative investors start diving in and momentum builds and then all of a sudden people are looking for a reason.”
An equity analyst at Charles Stanley Securities said that a takeover remained a “very low possibility”.