UPDATE 1-TUI AG says no plans to reduce stake in TUI Travel
* TUI AG reiterates to continue role as majority shareholder
* German magazine had reported stake sale being planned
* Companies had previously discussed merger
* TUI Travel share down 1 pct, pare earlier losses
FRANKFURT, March 13 (Reuters) - TUI AG has no plans to sell its stake in TUI Travel, Europe's largest tour operator, it said on Wednesday in response to a magazine report it was considering a sale.
TUI AG said in a brief statement that it wished to reiterate previous comments that it would continue its role as majority shareholder to drive value within the group for the benefit of all shareholders.
Manager Magazin had reported TUI AG could use the proceeds from a sale to invest in its own tourism operations and make a payout to shareholders.
TUI AG owns 56.4 percent of TUI Travel and had considered making an offer to buy out the remainder in order to expand its tourism activities, before deciding against it in January, saying a deal was not attractive at current share prices.
While TUI AG has its own hotels and cruises business, TUI Travel makes up 96 percent of its revenue.
Former CEO Michael Frenzel had said at the company's AGM last month that the current structure of the holding was "not optimal."
Shares in TUI Travel were down 1 percent to 316.7 pence ($4.71), paring earlier losses after the denial from its German parent. TUI AG shares were up 0.5 percent at 8.25 euros ($10.74).