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First Choice Holidays Considers Sale of its Package Holiday BusinessNovember 27, 2006 By: Joe Pike Travel Agent
Tour operator First Choice Holidays is in discussion with a number of parties over the sale of its package holiday operation. The company, according to recent reports, has played down speculation that it will sell its main package holidays business to rival MyTravel, saying that it is considering various options. First Choice recently issue this statement: "Following recent press speculation regarding its Mainstream business, the board of First Choice Holidays plc confirms that it has been reviewing how it might continue to maximize the potential of this market-leading tour operating business. It is considering a range of alternatives in this market and discussions with a number of parties are at a preliminary stage. However, there can be no certainty that any transaction will be forthcoming." The statement came in response to press speculation that MyTravel is interested in acquiring the business. The Sunday Times reported over the weekend that rival tour operator MyTravel is keen to buy First Choice's main package holiday operation, in a deal that could be worth £500m, leaving First Choice to concentrate on specialist and activity breaks. First Choice shares leapt 27.25p in early trading to 254.75p, just short of their all-time high of 260p set in January.