TUI AG puts company reorganisation on hold -sources

HANOVER, June 29 (Reuters) - German tourism group TUI AG (TUIGn.DE), which holds a 51 percent stake in TUI Travel (TT.L), will put the reorganisation of the group on hold, several sources with knowledge of the matter said on Monday.

Reuters had reported April that TUI AG planned to swap debt for TUI Travel's central Europe division, which includes operations in Germany, Austria, Switzerland and Poland. [ID:nLG563753] Several people close to the matter now said that this step, which TUI AG never confirmed, would not happen this year. "The company rather holds on to its money during the crisis," one of the sources said.

A TUI spokesman said: "There is a supervisory board order to examine possibilities to expand the tourism business. There are no decisions and there is no time pressure."

TUI AG shares rose 1.30 percent in Frankfurt to 5 euros at 1004 GMT, while TUI Travel shares fell 1 percent in London.

(Reporting by Arno Schuetze)