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LONDON, June 27 Europe's biggest tour operator
TUI Travel and majority owner TUI AG plan to
merge in an all-share, nil-premium deal, the two companies said
on Friday, following months of speculation.
TUI Travel, which is around 55 percent owned by the German
travel and tourism group TUI AG, said a deal would result in
potential cost savings of at least 45 million euros ($61
million) per year.
Under the plan, TUI Travel shareholders would receive 0.399
new TUI AG shares. Alexey Mordashov, the largest shareholder in
TUI AG, has indicated his support for the deal.
Shares in TUI Travel were up 4.8 percent, while shares in AG
were up 4.5 percent.
($1 = 0.7359 Euros)
(Reporting by Kate Holton; Editing by Pravin Char)