Monday January 14, 10:00 AM
Leisure group TUI mulls Hapag-Lloyd integration: report
FRANKFURT (AFP) - European leisure and transport firm TUI (Xetra: TUAG00 - news) might fully integrate its maritime transport unit Hapag-Lloyd into the parent group to protect it from hostile takeover bids, a press report said Monday.
TUI could also move its headquarters from the northern German city of Hanover to the port of Hamburg, where Hapag-Lloyd is based, the Financial Times Deutschland said.
"The main goal is to prevent a separation of maritime transport (activities) from the rest of the group," it quoted TUI boss Michael Frenzel as saying in a letter that called supervisory board members to a January 23 meeting.
A company spokesman contacted by AFP declined to comment on the report.
If the plan is approved, it could end chronic speculation about a break-up of TUI but disappoint investors that disagree with how Frenzel is running the company.
"The maintanence and reinforcement of our core activity ... of maritime transport is a priority," the head of TUI was quoted as saying.
TUI reaffirmed recently that it remained "attached to its two pillars, tourism and maritime transport."
TUI shares, which have been underpinned by speculation over a progressive increase in the holding of Russian steel magnate Alexey Mordashov, who now owns just over five percent, gained 1.88 percent in early Frankfurt trading to 16.79 euros.
The DAX index of leading shares had advanced by 0.33 percent, meanwhile.
Frenzel has been head of TUI for 13 years but faces stiff criticism from US investor Guy Wyser-Pratte and some others.
In November, Frenzel's contract was nonetheless extended until March 2012.
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