STOCKS NEWS EUROPE-TUI AG up after Hapag-Lloyd deal
Shares in German travel and tourism group TUI AG rise by 4 percent, the top MDAX gainer, after shipping firm Hapag-Lloyd, in which it holds a 22 percent stake, agrees to a tie-up with Chilean peer Vapores .
TUI has long been trying to sell its stake in Hapag-Lloyd and the merger could offer a chance, because it foresees an IPO of the company in 2015 in which TUI will have priority placement rights.
The stock also gains from an Equinet upgrade to 'buy' from 'accumulate'. The broker writes that the share price suffered after two TUI AG shareholders sold stakes, but adds that this overhang is now gone.
"Additionally, the merger of Hapag-Lloyd and CSAV might offer a good opportunity to sell the remaining 22 percent of Hapag-Lloyd for a good price," Equinet analyst Jochen Rothenbacher writes in a note to clients.
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