First Choice in talks to sell package tour unit
First Choice Holidays Plc is in early stage talks with a number of parties over the possible sale of its main package holiday business, it said on Monday.
First Choice, which also sells adventure holidays and short breaks, was responding to a report in the Sunday Times newspaper that the company was in talks to sell the business to rival MyTravel Group Plc.
The newspaper said the business, which operates holidays in the Mediterranean, was worth about 500 million pounds.
A First Choice spokeswoman declined further comment. MyTravel was not immediately available for comment.
"First Choice Holidays confirms that it has been reviewing how it might continue to maximise the potential (of its package holiday business)," it said in a statement.
"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," it added.
First Choice shares closed at 277 1/2p on Friday, valuing the business at about 1.2 billion pounds. MyTravel, which runs Going Places travel agents in the UK, closed at 199 3/4 pence, giving it a value of around 911 million pounds.
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