CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved.

Thomas Cook share price: what’s the latest after £750 million Fosun rescue deal?

The troubled tour operator announced that it had entered talks with China-based Fosun International regarding a rescue deal earlier this month, but disgruntled shareholders may block it.

Earlier this month, Thomas Cook announced that it had entered talks with China-based Fosun International, other lenders and banks regarding a £750 million rescue deal that could save the troubled tour operator.

However, the deal could be derailed by bondholders upset about the prospect of their shares being further devalued.

Thomas Cook teeters on the brink of collapse

Thomas Cook’s shareholders may be reluctant to accept the rescue deal from Fosun International, but a better alternative is unlikely to materialise.

In May, Citigroup analysts downgraded their target price for Thomas Cook’s stock from 28p to zero pence, declaring that the tour operator was ‘worthless’ in a note to investors.

The £750 million rescue deal values the company’s shares at around 3p per share. As it stands, Thomas Cook’s share price sits at 4.76p a share as of 14:55 GMT on Wednesday.

Learn to trade stocks with IG.

Fosun to take control of Thomas Cook if deal approved

Fosun International already controls a 18% shareholding in Thomas Cook, with the Chinese conglomerate securing a majority stake in the tour operator and a minority stake in its airline operations if the rescue deal is approved.

The deal has already been welcomed by Thomas Cook pilots who contend that the recapitalisation will help boost confidence among consumers, staff, creditors and regulators.

‘Hopefully this announcement signals the beginning of the end to the uncertainty that has been hanging over Thomas Cook,’ BALPA General secretary Brian Strutton said in a statement.

‘I strongly support the company's moves to find new investment in order to ensure a strong and successful future for the tour operator and the Thomas Cook airline.’

‘On behalf of the 600 pilots employed by Thomas Cook we hope this deal comes to pass,’ he added.


The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer.

Be ready to act on ECB opportunities

Learn how the ECB’s monetary policy announcements affect interest rates and price stability ahead of its next meeting in September 2020.

  • How might the next meeting affect the markets?
  • What are the key rate decisions to watch?
  • Why is the Governing Council announcement important for traders?

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.