Thomas Cook: holidays "safe" despite owner's insolvency

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  • alx_4alx_4 Forumite
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    I'm going away with TC on the 23rd of this month ,when i heard about the shareholder i was so worried, i hope this "safety" remains as i am really looking forward to goin away.
  • PollycatPollycat Forumite
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    THIS is what Thomas Cook website says:

    http://www.thomascook.com/arcandor-update/;jsessionid=3DF020ADAB95D7310DCD95E43864776D.appa24

    Maybe I'm an optimist, gullible, too laid-back, naive, stupid, doing an ostrich impression or whatever, but we have a package holiday booked with TC departing 22nd June and I'm not running around like a headless chicken, wailing that I've maybe lost my holiday. :confused:

    And MSE Guy, is Arcandor AG the 'owner' of Thomas Cook or the majority shareholder?
    Or are they one and the same?
  • Pollycat wrote: »
    And MSE Guy, is Arcandor AG the 'owner' of Thomas Cook or the majority shareholder?
    Or are they one and the same?

    Arcandor AG own 53% of Thomas Cook. TC are still listed on the LSE, so although they own a majority stake, it doesn't give them full control - and as such, the remaining shareholders can quite easily influence the company.

    By all accounts, Thomas Cook are doing just fine.

    http://www.hemscott.com/ir/tcg/ir.jsp?page=prices-delayed

    Have a look at this page - you can see that their shares are falling a bit, but they're still worth a considerable amount. The sales will be due to the fact that Arcandor will likely sell the TC shares at a considerable discount - but the company itself is still in a very healthy situation.

    TC are *not* a subsidary of Arcandor - indeed, a recent example is where Allied Irish Banks were in all sorts of trouble. They've now been nationalised by the Irish government, and they still own 70%-ish of BZWBK, a large Polish bank. The Polish bank has been unaffected by the troubles in Ireland - and right now, the BZWBK stake is actually worth more than AIB.

    When a company is listed on the stock market, it's simply just not possible for a shareholder of 53% to take money out of the company.
    From Poland...with love.

    They are (they're)
    sitting on the floor.
    Their
    books are lying on the floor.
    The books are sitting just there on the floor.
  • PollycatPollycat Forumite
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    Thanks, PBS.
    I was aware of the percentage holding that Arcandor AG held in Thomas Cook.

    I asked the question of MSE Guy as I think the headline "Thomas Cook: holidays "safe" despite owner's insolvency" is misleading - and it's stuff like this that leads to mass panic.
    Hence my post - and the question to MSE Guy about 'owner' and 'major sharehold' being the same was slightly tongue-in-cheek. :rolleyes:
  • edited 10 June 2009 at 4:21PM
    PolishBigSpenderPolishBigSpender Forumite
    3.8K Posts
    edited 10 June 2009 at 4:21PM
    Ahh, sorry, I completely missed it. My apologies :)

    I find the quality of the 'journalism' on here to be somewhat lacking, to be honest. To call Arcandor the 'owner' is dreadfully misleading - the correct way would be to say 'major shareholder'.
    From Poland...with love.

    They are (they're)
    sitting on the floor.
    Their
    books are lying on the floor.
    The books are sitting just there on the floor.
  • gabyjanegabyjane Forumite
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    I am one of these people who always worry and will do now until we go on our holiday booked with them! 1 it is our last big holiday for a while, 2 it has cost a fortune (although obviously not paid it all yet) and 3 it is prob the nicest one we have and will go on so i always think the worst...only 7 months of stressing to go lol!
  • bagand96bagand96 Forumite
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    gabyjane wrote: »
    I am one of these people who always worry and will do now until we go on our holiday booked with them! 1 it is our last big holiday for a while, 2 it has cost a fortune (although obviously not paid it all yet) and 3 it is prob the nicest one we have and will go on so i always think the worst...only 7 months of stressing to go lol!

    Its been said so many times on this forum, but Thomas Cook ARE safe:

    - Arcandor are NOT the owner of Thomas Cook (despite this thread title and the MSE article)
    - Thomas Cook are a separate company traded on the UK stock market. Arcandor are only a shareholder.
    - Thomas Cook are profitable, the UK division is the most profitable, and probably the most valuable part of Arcandor.
    I find the quality of the 'journalism' on here to be somewhat lacking, to be honest. To call Arcandor the 'owner' is dreadfully misleading - the correct way would be to say 'major shareholder'.

    Totally agree. Despite the fact that it is misleading, the issue has already been discussed on this forum, Thomas Cook have totally correct statements on their website, and it has been covered widely in the press. The article here will IMHO only worry people more.
  • spenderspender Forumite
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    I have Thomas cook shares and they are still very healthy. It has affected the share price but not to such an extent that the market is obviously worried about the feasibility of the company continuing.
    No Matter what you do there will be critics.
  • bagand96 wrote: »
    Totally agree. Despite the fact that it is misleading, the issue has already been discussed on this forum, Thomas Cook have totally correct statements on their website, and it has been covered widely in the press. The article here will IMHO only worry people more.

    This is the problem - people will see this article and immediately assume the worst will happen, when any careful examination of the issue can reveal that Thomas Cook are not in any serious trouble. They did lose 7% from their share price today - but that could be in anticipation of the Arcandor shares being sold at a massive discount.

    The use of "safe" in quotes can only lead people to assume the worst.

    Apparently the total debt owed to Thomas Cook by Arcandor is just under 1 million pounds. Given that TC's revenues are well over half a billion pounds a year - it's absolutely nothing.
    From Poland...with love.

    They are (they're)
    sitting on the floor.
    Their
    books are lying on the floor.
    The books are sitting just there on the floor.
  • bagand96bagand96 Forumite
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    Dissapointed to see this just land in my inbox as part of Martin's Weekly Money tips. This TC thing is a non event in terms of people taking TC holidays.

    Ok, it has been reported in the press, but MSE typically is seen to provide the true story for consumers. The fact it is mentioned at all in the weekly email will unecessarily worry existing customers and make potential customers doubt TC; especially considering the use of "safe". They are safe. period. Poor journalism IMHO which is not what you would usually expect from MSE :(
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