http://www.tuitravelplc.com/

TUI Travel is one of the world’s leading leisure travel groups, with over 220 trusted brands in 180 countries and more than 30 million customers.

‘Making travel experiences special’ underpins everything we do and keeps our focus on providing the unrivalled choice, professionalism and confidence our customers and stakeholders can rely on, now and in the future.

Our business is grouped into three sectors, comprising many of the best loved and market-leading travel brands worldwide – Mainstream, Accommodation & Destinations and Specialist & Activity. From the most popular holiday brands to an unparalleled collection of specialist travel providers, we offer the breadth and depth of experiences and expertise for every conceivable type of traveller.

We are a truly global business, employing approximately 55,000 people and operating in 31 key source markets worldwide. As a dynamic, influential company we are committed to responsible leadership in the travel sector. Our head office is in the UK and TUI Travel PLC is listed on the London Stock Exchange as a member of the FTSE 100 and FTSE4Good indices with the ticker code TT.

Absolutely going for it today following these results. Just goes to show what a load of utter nonsense there is in the press about people who can't afford to feed their children. Encouraging Winter trading and strong Summer bookings. What recession, where?

doodlebug - You been a complete knobhead all your life or is this a new career? "What recession, where ?" Open your eyes you muppet!

:-))

Chris Carson - charming chap that you obviously are - the newspapers keep telling us that everyone is broke and we are in a recession, but somehow people still manage to find the money to spend on holidays. Do you understand that simple translation of what I was trying to say? Thank you for the compliments. Great bulletin board this, I have so far been called "scum", "pleb", "knobhead", "muppet" and I can't remember the other insult. Thankfully, there also seem to be some class acts on moneyam to balance things out.

The results today perhaps show the British public are not giving up on their holidays lightly, the same for all the other countries Tui operates in.( Same as fish and chips on Friday and some plants for the garden in summer)
Tui seem to have got the choice of holidays right for consumers that have tightened
their belts. What a difference to Thomas Cook.

TUI travel announced preliminary results for the year ended 30th September 2012 yesterday. Revenues were down 2% to £14.46bn, as organic growth of 2% was offset by foreign currency translation impact of 4%. Underlying operating profit rose 4% to £490m, with record mainstream underlying operating profits, on a constant currency basis, across all markets excluding France and Southern Europe. The UK market delivered a tremendous performance with record underlying operating profit of £197m (FY2011: £149m) and operating profit margins of 5.4%, up from 4.2% in the previous year. The French operation reported an underlying operating loss of £47m. Pre-tax profit on an underlying basis increased 8% to £390m. Growth was also supplemented by £42m in cost savings from the business improvement programme. Basic EPS on an underlying basis rose 9% to 25.8p. Sales of higher margin unique holidays rose by three percentage points to 65% of Mainstream holidays. Total Mainstream sales in the winter 2012/13 season were up 3% y-o-y, despite customer’s numbers dropping 1%. The management said that, excluding France, trading for both winter 2012/13 and summer 2013 were very encouraging. The management is confident that its new strategy for growth could deliver an underlying operating profit CAGR of between 7 to 10% over the next five years. The Board raised its final dividend per share to 8.3p from 8p, taking the full-year dividend to 11.7p, a 4% increase from last year. The stock rose 3.4% yesterday.

TUI Travel: Exane BNP raises target price from 260p to 300p, while maintaining a neutral rating.

JPMorgan Cazenove tipsters are backing TUI travel (LON:TT.) as their top pick of the European tour operators.

After a strong set of full-year results, the broker raises its target price a touch to 320p, above the current price of 287p.

The broker reiterated its ‘overweight’ rating on the stock and is eagerly awaiting more updates from the company that claims to have made “a very encouraging start” to 2013.

Looks like these replace PNN in the FTSE. FTSE 100 Constituent Changes

TUI travel (LON:TT.) was also upgraded today by HSBC to 'neutral' from 'underweight' while the price target remained the same at 289 pence

TUI Travel reveals record year of profits
Fri 04 Jan 2013

TT. - TUI Travel

Latest Prices
Name Price %
TUI Travel 286.00p -1.04%

FTSE 100 6,052 +0.08%
FTSE 350 3,238 +0.08%
FTSE All-Share 3,173 +0.08%
Travel & Leisure 5,421 -0.29%

LONDON (SHARECAST) - TUI Travel posted Friday a record year of profits following strong performance in UK markets and improved operational efficiency.

The FTSE 100 leisure company reported an operating profit increase of 12% to £526m on a constant currency basis for the year ended September 30th, 2012.

The group’s underlying operating profits were £490m, up from £471m a year ago.

UK business activity contributed to the company’s growth with a record underlying profit of £197m compared to £149 in 2011.

The results were also driven by revenues from international expansion across online bookings for accommodation. Online accommodation profits were up 3% to £35m.

“This has been a year of record success across the group, proving that our strategy is delivering results," Chief Executive, Peter Long, said in a statement.

“…These are the results of a resilient and flexible business with the right strategy for the market and a large number of colleagues who care about our customers, are passionate about our leisure travel experiences and can plan, implement and deliver growth.”

The final dividend rose modestly to 8.3p per share from 8.0p in 2011, resulting in a full year dividend of 11.7p per share, up from 11.3p.

The company will hold its annual general meeting on February 7th to address shareholders about the results.

Shares were down 1.11%to 285.00p at 11:20 Friday

TUI Travel: Panmure Gordon raises target price from 200p to 245p keeping its sell recommendation.

TUI Travel confirms merger talks with TUI AG
StockMarketWire.com
TUI Travel has confirmed that its independent directors have received an approach from TUI AG which may result in a combination of the two companies.

TUI Travel says talks are at a very early stage, but are on the basis that any such combination, if effected, would be achieved not by a reverse takeover but by means of a nil premium all-share merger.



At 2:49pm: (LON:TT.) share price was +18.45p at 299.85p

Announcement re: Press Speculation
RNS
RNS Number : 7114V
TUI Travel PLC
16 January 2013

For Immediate Release

Not for release, publication or distribution, in whole or in part, in or into or from any jurisdiction where to do so would constitute a violation of the relevant laws of such jurisdiction

This announcement is not an announcement of a firm intention to make an offer under Rule 2.7 of the City Code on Takeovers and Mergers (the "Code") and there can be no certainty that an offer will be made

16 January 2013



Announcement by TUI Travel PLC ("TUI Travel") Regarding Press Speculation



The Independent Directors of TUI Travel are aware of recent speculation and are making this announcement in the interests of market clarity. The Independent Directors of TUI Travel have recently received an approach from TUI AG which may or may not result in a combination of the two companies. Discussions are at a very early stage, but are on the basis that any such combination, if effected, would be achieved not by a reverse takeover but by means of a nil premium all-share merger.



In accordance with Rule 2.6(a) of the Code, TUI AG is required, by not later than 5.00 p.m. on 13 February 2013, to either announce a firm intention to make an offer for TUI Travel in accordance with Rule 2.7 of the Code or announce that it does not intend to make an offer, in which case the announcement will be treated as a statement to which Rule 2.8 of the Code applies. This deadline can be extended with the consent of the Panel in accordance with Rule 2.6(c) of the Code.



This announcement does not amount to an announcement of a firm intention to make an offer and there can be no certainty that an offer will be made, nor as to the terms on which any offer will be made.



This announcement has been made without the consent of TUI AG.

TUI Travel flying high after approach from TUI AG - UPDATE
By Benjamin Chiou

Wed 16 Jan 2013


LONDON (SHARECAST) - London-listed leisure travel company TUI Travel raced ahead of Wednesday afternoon after the firm confirmed that it has been approached by its German parent company, TUI AG, about a merger.

“The Independent Directors of TUI Travel have recently received an approach from TUI AG which may or may not result in a combination of the two companies,” the company announced.

Shortly after the announcement, the shares, which opened today’s session at 281p, surged 7.32% to 302p by 15:22.

TUI Travel was formed back in September 2007 after First Choice Holidays merged with TUI AG’s travel and tourism division. TUI AG owns 56.4% of the UK company.

Sources had told Reuters earlier in the day that one of the possible “combinations” would be for TUI Travel to buy out TUI AG in an attempt to create synergies between the two groups. However, this – described as a ‘reverse takeover’ - was later denied by the UK-listed company.

TUI Travel said: “Discussions are at a very early stage, but are on the basis that any such combination, if effected, would be achieved not by a reverse takeover but by means of a nil premium all-share merger.”

While TUI AG already owns a majority stake in TUI Travel, it is thought not to have the funds to buy the remaining 43.6% interest that it does not own, these sources told Reuters.


"Far from straightforward"
Analysts at Jefferies responded to the news, saying that the transaction, if any, is “likely to be far from straightforward, the benefits to TUI Travel shareholders unclear and with the risk that the highly rated TUI Travel management is not involved in the new company”.

They pointed out while TUI AG has a big stake in TUI Travel, the parent’s market capitalisation is less than 40%.

“While we believe there could be some synergies, notably a c€50m HQ cost at TUI AG and that there are tax losses to be exploited, we think these could be difficult and costly to realise.

“We also struggle to see why the largely UK shareholder base would want to dilute their equity in the pure play tour operations of TUI Travel, which rose over 70% in the last year, through a nil-premium merger with German-listed conglomerate TUI AG.”

TUI Travel: Morgan Stanley upgrades from underweight to equal-weight keeping its target price of 250p. Exane downgrades from neutral to underperform.

Broker snap: TUI Travel/TUI AG deal unlikely, says Investec
Thu 17 Jan 2013

LONDON (SHARECAST) - Investec has reiterated its 'hold' recommendation for travel and leisure group TUI Travel (TT) after yesterday's announced 'approach' from parent TUI AG (AG), saying that completion of a potential deal looks unlikely.

The broker admitted that any combination of assets between the two companies is "strategically sensible" as they already work together on combining AG's hotel and cruise assets into TT's vacation itineraries.

Analyst James Hollins said: "The combination has been talked about for years and, in our view, a merger (as opposed to an AG acquisition of TT) would limit the need to immediately pay down outstanding convertibles that would be required after an AG takeover.

"It also negates the requirement for either group to fund an outright acquisition (AG currently owns c56% of TT) and the combined entity could still benefit from AG’s considerable tax losses."

Nevertheless, Hollins foresees a number of uncertainties regarding a deal.

He highlighted that lack of "material" merger synergies - likely to be below the €500m mooted in the press - and has concerns about the management structure after the merger, saying that "industry legend" and TT Chief Executive Peter Long would like leave.

Hollins concluded: "The potential TT/AG corporate action has been a share price crutch for some time and we expect it to remain. However, with low deal likelihood and an 11x price-to-earnings multiple to FY13E, we retain our 'hold' and 270p price target on TT."

Shares were up 0.51% at 294p by 09:29 on Thursday.

Is TUI Travel merger a signal to sell?
By Darshini Shah | Thu, 17/01/2013 -

TUI Travel (TT.) and TUI AG have announced early-stage talks on a nil premium all-share merger.

TUI AG is said to be discussing a deal to combine the German travel and tourism group with its 56.4% majority-owned UK business, TUI Travel, in a bid to cut costs.

"Discussions are at a very early stage, but are on the basis that any such combination, if effected, would be achieved not by a reverse takeover but by means of a nil premium all-share merger," TUI Travel said on Wednesday.

TUI AG has until 13 February to decide to make an offer or walk away.

Mixed reaction
The deal would make strategic sense - TUI Travel comprises the whole tour-operating business of the travel group, while TUI AG has hotels and luxury cruise operations, as well as a stake in container shipper Hapag-Lloyd. The companies already work together, combining TUI AG's hotel and cruise assets with TUI Travel's vacation itineraries.

"A merger, as opposed to an acquisition of TUI Travel, would limit the need to immediately pay down outstanding convertibles that would be required after an TUI AG takeover," pointed out James Hollins, analyst at Investec. "It also negates the requirement for either group to fund an outright acquisition and the combined entity could still benefit from TUI AG's considerable tax losses."

However, others were more sceptical of the deal, pointing out that TUI AG lacks the funds needed to buy the remaining 43.6% of TUI Travel that it does not already own. Hollins also voiced doubts that synergies would be considerably below the €500 million (£417 million) mooted in the press.

Sell TUI - analyst
The merger proposal highlighted that TUI Travel shareholders were unlikely to receive a premium for being minority shareholders.

"If an offer was made and accepted it would mean existing TUI Travel shareholders owning shares in an enlarged business with the majority of earnings from tourism, but also cruises and less satisfactorily from container shipping," observed Simon French, analyst at Panmure Gordon. "In effect, they would be swapping shares in a relatively focused business for shares in a conglomerate."

He acknowledged that there was a strong argument for shareholders to sit tight and do nothing, but still reiterated his 'sell' recommendation.

"Given the shares have almost doubled and there are ongoing problems with the Dreamliner aircraft, now seems a very opportune moment to sell shares," he stressed.

Darshini Shah - author of another article a few days ago about TCG saying it was time to sell TCG. Maybe she doesn't travel particularly well, but in any case I don't think she has much street cred. I don't hold any TUI shares, if I did I certainly wouldn't be pancking to sell on the basis of this article.

I find it best to use your own nose as to speak when to sell. I have learnt this the hard way with the likes of the shares mags saying sell.