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EUROPE - Private equity interest in Thomas Cook

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Both private equity and trade buyers are reportedly circling Thomas Cook, Europe's second biggest tour operator, after its majority stakeholder, German retailer Arcandor, filed for insolvency on Tuesday.

It is reported that a management buyout of the company could potentially be an option, but it would depend largely upon credit market conditions.

The uncertainty surrounding Arcandor's stake has resulted in the company's stock losing nearly 30 percent of its value since May 6, before rising 10% on Tuesday as bid rumours intensified.

Arcandor is said to have a EUR 650m debt pile and reportedly plans to use its shares in Thomas Cook as collateral against its banking facilities.

Trade buyers interested in the company include German retailer Rewe and Switzerland's Kuoni.

Other options for the company include a placing of Arcandor's stake.

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