Thomas Cook scraps merger plans for Condor

11-07-2008

Thomas Cook scraps merger plans for Condor
Thomas Cook has abandoned its plans to merge its German airline Condor with Air Berlin after the country's competition regulator raised concerns.

The two companies posted a statement on the stock exchange this morning saying they are withdrawing their current application for approval of the proposed acquisition of Condor Flugdienst by Air Berlin.

The statement added: "As a result, the parties have agreed that the existing agreement from September 2007 will be terminated.

"Discussions with Thomas Cook continue with respect to the feasibility of an alternative transaction."

Thomas Cook said it continued to view Condor as a "strong business with significant potential" and would look at a range of other options for the airline.

The company also said, in light of the withdrawal, it has decided to suspend its share buy-back programme until further notice.

The German Cartel Office had previously said it had concerns the deal would restrict choice for customers flying to Mediterranean destinations.

Thomas Cook shares were up more than three per cent in mid-morning trading in reaction to the news while Air Berlin shares rose five per cent.

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