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.

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.

TUI Travel (LON:TT.) has dropped to the bottom of the FTSE 100 after its German parent said it will not be making a bid for the tour operator.

Speculation in the press last week led Europe’s largest tour operator to confirm that an initial approach had been made by TUI AG, which already own more than half of the company.

But it warned over-eager investors that talks were at a very early stage, with a deal by no means done and dusted.

The news that the all-share merger has fallen through dragged shares 4% lower today.

And TUI AG, which is looking to turn its attention to tourism, will now not be able to make an offer for the travel company in the next six months under UK takeover

TUI Travel: Citigroup takes target price from 175p to 300p, while leaving its neutral rating unaltered.

Broker snap: TUI Travel's valuation 'too generous', says Panmure Gordon
Fri 01 Feb 2013


LONDON (SHARECAST) - Panmure Gordon has kept its 'sell' rating for travel and leisure firm TUI Travel ahead of its first-quarter results next week on concerns over current trading.

"We believe current trading is strong reflecting the tailwind of 2012 being the wettest year on record in England, but still see headwinds in continental Europe," the broker said.

Analysts highlighted research which suggests that 40% of UK consumers intend on spending less on holidays abroad in 2013.

"We also have concerns around rising fuel prices, a weak macroeconomic backdrop in the group’s major markets and note the problems with the Dreamliner aircraft the group has made significant investment in."

The shares are trading at 10.7 times 2013 current-year earnings and while this is a sharp discount to sector peer Thomas Cook (also rated 'sell'), Panmure said the valuation is "still too generous" given the stock's five-year average forward price-to-earnings ratio of 8.8.

The broker said that last month's called-off bid approach from parent company TUI AG highlighted that it "does not want to pay a premium for control of this minority".

Panmure has maintained a 245p target price for the shares, implying around a 16% potential downside to current prices.

Nevertheless, shares were up 1.38% at 294.8p by 10:30 on Friday.

Friday brings us a first-quarter update from TUI Travel . While fellow high-street travel agent Thomas Cook (Xetra: A0MR3W - news) was just about escaping insolvency by the skin of its teeth, TUI Travel managed to weather the storm without harm to its dividend, and has emerged strongly with a couple of years of earnings growth.

With the shares on 295p, the latest analysts' consensus for the year to September puts them on a P/E of under 11, with a 4.2% dividend yield expected. News (NasdaqGS: NWS - news) on the important winter booking season will be keenly awaited.

1st Quarter Results

· Outperformance in UK & Nordic markets

· Our unique holidays driving increases in UK market share

· Q1 underlying operating loss reduced by 15%1

· Expect performance towards the top end of roadmap guidance for full year2



Highlights

· Positive trading momentum

- Operating loss reduced by £16m to £93m (excluding the impact of empty leg accounting1 which has no full year impact). Underlying Q1 operating loss of £116m (2012: loss of £109m).


- Significant continued growth in UK cumulative market share (GFK Ascent) with Summer 2013 up 4% and the key January booking period up 2%, gaining on the 7% increase in the same period last year.


- Strong trading in the Nordic region and Accommodation Wholesaler.

· Unique holidays and direct distribution strategies delivering

- Unique holiday bookings in the UK, Nordics and Germany increased by 15%, 10% and 6% year-on-year respectively for Summer 2013.


- Direct distribution sales in the UK and Nordics for Summer 2013 of 90% (2012: 89%) and 85% (2012: 84%) with online sales accounting for 37% (2012: 36%) and 65% (2012: 63%) respectively.

· Online Accommodation growth

- Accommodation Wholesaler continues to build a global leadership position with TTV up by 9% for Summer 2013, driven by Latin America and Asia where TTV is up by 23%.

· Strong current trading

- Winter 2012/13 - 83% sold with higher margins and average selling prices in key source markets.

- Strong Summer 2013 bookings in the UK and Nordics, up 9% and 10% respectively.


- Summer 2013 margins ahead of prior year in key source markets.

TUI Travel: Bank of America takes price target from 335p to 355p, while its buy recommendation is unchanged

TUI Travel: Barclays shifts target price from 320p to 325p and keeps an overweight rating. Deutsche Bank takes price target from 265p to 275p leaving its hold recommendation unaltered.

TUI Travel: JP Morgan shifts target price from 320p to 350p reiterating an overweight rating.