DELRAY BEACH, Fla. -- U.K.-based Airtours agreed to buy Travel
Services International, one of the largest wholesale and retail
travel companies in the U.S., in a cash deal valued at about $26 a
share, or $385 million.
Airtours, headquartered in Manchester, England, is the world's
largest air-inclusive tour operator. The agreement will provide a
highly visible retail outlet for Carnival Corp., which owns 30% of
Airtours.
"The combination with Airtours brings great shareholder value to
our existing shareholders," said Joseph Vittoria, chairman and
chief executive of TSI, based here, which operates under the name
The Travel Co.
TSI recently began an aggressive push to boost Internet sales
following a disappointing 1999, when net income fell to $7.4
million from $12.4 million a year earlier.
The company a few weeks ago introduced an enhanced version of www.mytravelco.com, with real-time cruise pricing.
The acquisition is subject to regulatory approval and other
closing conditions. Airtours said it will begin a cash tender offer
to buy all of TSI's outstanding shares no later than March 1.
The tender offer, which will remain open for 20 business days,
unless it is extended, is based on the ability to tender enough
shares to give Airtours at least a majority stake in TSI.