Note comment from Stella UK MD from a couple of days ago.......also no real concern from established UK travel company Worldchoice. Stella needs Worldchoice to compliment Global deal from earlier this year.
Global was reported as being purchased by Stella/MFS for about 100 million pounds....but a purchase figure was not confirmed by MFS. (My comment).....may have chewed up alot of their surplus cash.....thus a bit of short term liquidly sell down of stakes in these smaller holdings.
Stella Travel Services looks set to win Worldchoice deal
(24 January 2008) Worldchoice leaders will recommend one of two proposals for a buyout next week, with the board appearing close to a deal with Stella Travel Services.
But the travel agent consortium is still considering a counter offer from the Travel Trust Association.
Stella took over Global Travel Group – and its prolonged merger talks with Worldchoice – on January 1. However, the Australian-owned Stella Group is now the subject of takeover bid in its home market where parent investment company MFS has hit problems.
The share price of MFS collapsed last week after a rival finance company withdrew from takeover talks amid concerns about debt.
However, Stella Travel Services UK managing director Andrew Laurie dismissed concerns about its future. “MFS has been open about its intention to sell Stella,” he said. “It will have no impact on the UK business. Stella is financed and run independently.”
Stella describes itself as vertically integrated, but operates differently from groups such as TUI Travel and Thomas Cook. Laurie has reassured Worldchoice that the Stella model suits an independent consortium.
He said: “Our model is to support independent agents. We have 3,500 agents associated with us worldwide and 3,425 are independent.”
The exception is Harvey World Travel in the UK, which Stella owns. “All the others are members of consortia or groups,” said Laurie. “We don’t have our own aircraft or a mass of capacity to fill. There is no product agents are obliged to sell.”
The Worldchoice board has held meetings with both bidders. TTA leaders presented modified proposals last week and are now awaiting a response.
TTA director Todd Carpenter said: “I’m still optimistic. The uncertainty about Stella’s ownership does not hurt our case. But if there is no deal we have other retail targets.”
Worldchoice chairman Colin Heal said: “We are in close discussions and will make a decision before the end of January. Shareholders will be told in due course.”
Worldchoice is the largest group of independent leisure travel agents in the UK. Our aim is to offer clients the widest possible choice, the highest standards of service, top quality holidays and real value for money. Worldchoice agents are there to help you before, during and after your holiday and they will do everything possible to ensure that you get the holiday that best suits your needs at a price you can afford. Worldchoice agents are friendly, helpful and efficient. So visit your local Worldchoice agent and discover for yourself the Worldchoice experience.
Established in 1976 Worldchoice was one of the first Travel Agents’ consortia.
Today we have over 400 members.
We consider our independence to be our strength and we protect it passionately. Our combined strength gives us the negotiating power to command the best commercial terms in the market and enables our members to maximize their profit potential. Added value services ensure that potential profits can be realised and our innovative and ground breaking 24/7 internet based holiday search engine and Foreign Exchange service underline the pioneering philosophy that has enabled us to provide a unique range of member and customer services that guarantee sustainable profits for our members whilst protecting their independence.
We offer our members an unparalleled service and access to the most dynamic developments in today’s fast moving travel industry.
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