What if Europe’s tourism giant TUI were to pass under the control of its hotel partners?
All the protagonists openly refute the intentions they are charged with, without closing all the doors. The WestLB affirms there is no hurry, but that it will study any serious proposals to take over its block of shares. The Spanish groups point out what a major investment it would be, disproportionate to the funds available. However Barcelo is discretely looking for financial allies from outside the world of tourism. German law complicates the operation a bit further by requiring anyone buying all of WestLB’s shares to make the same offer to the other shareholders in the group, thereby turning the acquisition into a public offer. If the conclusion is favourable to Spanish hoteliers, it will be a major reversal in the balance of power between partners.All the protagonists openly refute the intentions they are charged with, without closing all the doors. The WestLB affirms there is no hurry, but that it will study any serious proposals to take over its block of shares. The Spanish groups point out what a major investment it would be, disproportionate to the funds available. However Barcelo is discretely looking for financial allies from outside the world of tourism. German law complicates the operation a bit further by requiring anyone buying all of WestLB’s shares to make the same offer to the other shareholders in the group, thereby turning the acquisition into a public offer. If the conclusion is favourable to Spanish hoteliers, it will be a major reversal in the balance of power between partners.The position of the West Landes Bank, the largest shareholder of TUI AG, risks to radically change the relationships between the tour operator and its hotel correspondents. For three months, the bank no longer hides its desire to sell its 31.4% holding. Beacause of the weak performance of World of TUI and the sector’s strong exposure to the hazards of the international economic situation, the bank wants to let it go, feeding speculations. This is where Spanish hoteliers come in to the picture. The magazine Der Spiegel revealed that a group of Iberian hoteliers could seize the opportunity to enter into TUI’s strategy. During the last seasons, the major tourism operators had neglected traditional Spanish destinations for countries such as Egypt and Turkey. By becoming major shareholders, the Spanish hoteliers could influence programming and redirect clients of TUI, towards their properties and countries where they have a strong presence such as Cuba or the Dominican Republic.Behind the bid may be found the main Spanish groups, Sol Meliá, NH Hoteles and Barcelo. Hushing their rivalry, they would form a consortium backed by the largest Spanish financial institutions, such as Santander and BBVA. Barcelo is no stranger to this sort of practice because it already took a 21.3% share in the capital of First Choice, the number 5 British tour-operator.
