Appears to be struggling to sell Hapag Lloyd
“Hold” Tui short term bonds; Move to “Hold” on its hybrid TUIGR 8.625% 01/13 at 96.7 or a Z-spread to its next call of 902 bps (spreads have widened by c. 200 bps since our sell recommendation from June 17th)
According to Reuters, which cited an unidentified Tui representative, the company is struggling to dispose its stake in Hapag Lloyd and does not believe that a sale will go through in 2011 given challenging conditions in the shipping industry. Hence, Tui may wait to dispose its stake until market conditions improve. However, Tui also has the option to sell its stake to Albert Ballin in January 2012. If Ballin is unable to finance the purchase, Tui may sell to a third party and Ballin would have to surrender a 12% stake to ensure that the acquirer gains majority control. The purchase price would be determined by an independent Board. However, we do not believe that the sale to Albert Ballin is the most likely route. In any case, in our view its liquidity is safe for the time being. As Tui hybrid spreads have widened by c. 200 bps since our “sell” recommendation on June 17th, and as we do believe that Tui will outperform Thomas Cook, we move our recommendation to “hold”. We maintain our “High Risk” assessment on the LARA scale.
Sono passati sell a hold sulla perp di TUI, mi fa sperare per il mio cip comprato quando loro dicevano sell