Fosun was offering 450 pounds CEO of their money, not 900 pounds and they needed another 200 pounds as others refused the deal. If you think Thomas Cook is now worth anything you are in dreamland. I agree they have money, but they are under pressure on their overseas strategies.
From the FT:
"The collapse is a huge blow to Chinese conglomerate Fosun, Thomas Cook’s biggest shareholder, which had proposed to contribute £450m to a rescue package. The group said in a statement that it was “disappointed” and that “its position remained unchanged throughout the process, but unfortunately other factors have changed”.
Boris Johnson, the UK prime minister, told reporters en route to the UN General Assembly in New York that “it’s true a request was made to the government for a subvention of about £150m. Clearly that’s a lot of taxpayers’ money and sets up a moral hazard in the case of future such commercial difficulties that companies face.”
Transport secretary Grant Shapps said the government had been asked for between £150m and £250m but added that the bailout money would only have kept Thomas Cook afloat for a short period if it had been agreed. He blamed the shift of business from the high street to online for the demise of Thomas Cook."
BRU Price at posting:
27.0¢ Sentiment: Hold Disclosure: Held
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