CTM stead­ies its shares

Travel Daily - - News -

COR­PO­RATE Travel Man­age­ment has re­it­er­ated that no sub­stan­tial new is­sues have been raised by hedge fund VGI in a sup­ple­men­tary re­port is­sued ear­lier this week, with the com­pany’s shares surging al­most 10% af­ter the ASX opened to­day.

CTM’s re­sponse (TD break­ing news) once again noted the “sig­nif­i­cant vested in­ter­est” by the raider in driv­ing the share price down­ward, adding that “at the core of VGI’s con­clu­sions is a fun­da­men­tal mis­un­der­stand­ing of the cor­po­rate travel sec­tor and the CTM busi­ness model”.

The com­pany noted it had en­gaged ac­count­ing firm EY to help re­spond to mat­ters raised by VGI, adding it had specif­i­cally cho­sen EY be­cause of its travel sec­tor ex­pe­ri­ence - most no­tably as the au­di­tor of Flight Cen­tre.

CTM’s own au­di­tor, PwC, is also the au­di­tor of Hel­loworld and looked af­ter Hogg Robin­son Group prior to its ac­qui­si­tion by Amer­i­can Ex­press Global Busi­ness Travel ear­lier this year.

EY’s pre­lim­i­nary ob­ser­va­tions in­di­cate that VGI’s re­port is “su­per­fi­cial”, with a sum­mary ad­dress­ing key points raised by the hedge fund around good­will, work­ing cap­i­tal, cash and in­ter­est.

CTM said it “does not in­tend to have the busi­ness dis­tracted by base­less and self-serv­ing claims,” with the Board con­fi­dent its strat­egy would con­tinue to de­liver ben­e­fits for cus­tomers, staff and share­hold­ers.

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