News just out from the UK......maybe a little hard for incoming buyer of Stella/and for that, this UK travel firm Worldchoice to close respective deals.
A deferral by Worldchoice for 2 weeks may allow for Stella sale to proceed.
Worldchoice still undecided over Stella and TTA's rival bids
(31 January 2008) Worldchoice has delayed a decision on whether to join Stella Travel Services or accept a bid from the Travel Trust Association.
The consortium's board had promised a decision by the end of January following prolonged merger talks with the Global Travel Group - taken over by Stella Travel at the start of the year. The TTA submitted a counter offer in November.
However, Worldchoice chairman Colin Heal said: "There is no announcement this week. Discussions continue."
A decision is now expected in two weeks, despite Stella having sought a deadline of January 31. The delay suggests talks remain in the balance, amid continuing uncertainty about the immediate future of the Australian-owned Stella Group - itself the subject of takeover bids.
The share value of parent investment-company MFS collapsed two weeks ago and it has appointed an insolvency specialist to help it restructure and sell Stella quickly. There is no suggestion that Stella is in difficulty.
Stella Travel Services UK includes Harvey World Travel, Travel 2/4 and Travelbag as well as Global Travel Group. Managing director Andrew Laurie said: "Stella's sale will have no impact on the UK business."
By Ian Taylor
MFS Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
