Thomas Cook shares rally as bidders circle

THOMAS COOK shares jumped 18.3pc after reports suggested the travel company has been approached by suitors about a possible takeover.

Despite the rally, shares are still worth 28.99p, just a fraction of the 146p they were trading at less than a year ago. The debt-laden company has struggled as a fall in demand for package holidays and intense online competition hammered profits.

Thomas Cook has reportedly been approached by several parties. The status of talks between the company and its potential suitors is unclear, with insiders cautioning that any deal is months away.

Fosun, the Chinese company with which Thomas Cook runs a joint venture, is reported to have lodged a preliminary interest in buying its partner’s tour operating business.

The company has £1.4bn of total debt. FTI Consulting is advising a group of lenders on their financial exposure to Thomas Cook, Sky News said.