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| Version 5 | Version 6 |
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| First Choice to tie up with TUI | First Choice to tie up with TUI |
| (40 minutes later) | |
| Travel firm First Choice will merge with the tourism division of Germany's TUI to form Europe's top tour operator. | Travel firm First Choice will merge with the tourism division of Germany's TUI to form Europe's top tour operator. |
| The new firm, TUI Travel, will have 27 million customers and £12bn in sales. It will be based in the UK and there are plans to list its shares in London. | The new firm, TUI Travel, will have 27 million customers and £12bn in sales. It will be based in the UK and there are plans to list its shares in London. |
| First Choice said that there would be job "duplication", but added it was too early to say if there would be cuts. | First Choice said that there would be job "duplication", but added it was too early to say if there would be cuts. |
| The move comes after rivals Thomas Cook and My Travel merged, following changes in the way consumers book holidays. | The move comes after rivals Thomas Cook and My Travel merged, following changes in the way consumers book holidays. |
| Thomson Holidays-owner TUI will have a 51% stake in the new firm, with First Choice controlling the remaining 49%. | Thomson Holidays-owner TUI will have a 51% stake in the new firm, with First Choice controlling the remaining 49%. |
| Shrinking market | Shrinking market |
| The deal still needs to be approved by competition regulators and First Choice shareholders, and some analysts questioned whether it would get clearance. | The deal still needs to be approved by competition regulators and First Choice shareholders, and some analysts questioned whether it would get clearance. |
| According to Mark Reed, an analyst at Kepler, regulators may be worried that too much power would be concentrated in the hands of a few big companies. | According to Mark Reed, an analyst at Kepler, regulators may be worried that too much power would be concentrated in the hands of a few big companies. |
| EUROPE'S TOP TOUR FIRMS 1. TUI Travel2. Thomas Cook3. Rewe Touristik4. Grupo Iberostar5. Kuoni | EUROPE'S TOP TOUR FIRMS 1. TUI Travel2. Thomas Cook3. Rewe Touristik4. Grupo Iberostar5. Kuoni |
| "You can argue whether regulators would allow the big four to go down to the big three," Mr Reed said. "And so there must be even more of a question mark whether they will let it go down to the big two." | "You can argue whether regulators would allow the big four to go down to the big three," Mr Reed said. "And so there must be even more of a question mark whether they will let it go down to the big two." |
| First Choice, based in Crawley, said it was confident the deal would get the green light. | First Choice, based in Crawley, said it was confident the deal would get the green light. |
| "We don't anticipate any issue, because the definition today of our market place is very different to what it was a number of years ago," said Peter Long, chief executive of First Choice. | "We don't anticipate any issue, because the definition today of our market place is very different to what it was a number of years ago," said Peter Long, chief executive of First Choice. |
| Mr Long, who will be chief executive of the newly formed TUI Travel, said the deal between the two firms only became a possibility after their rivals joined forces. | Mr Long, who will be chief executive of the newly formed TUI Travel, said the deal between the two firms only became a possibility after their rivals joined forces. |
| Dove-tailing | Dove-tailing |
| A spokesperson for First Choice said the companies were a good strategic fit because the UK firm focused on activity and speciality holidays, while TUI had built up a larger consumer business based on lower-cost deals. | A spokesperson for First Choice said the companies were a good strategic fit because the UK firm focused on activity and speciality holidays, while TUI had built up a larger consumer business based on lower-cost deals. |
| They added that even though there will be "some job duplication of jobs, you have to keep in mind that it will be a growing business" and as such other opportunities should be created within the new company. | |
| SOME FIRST CHOICE BRANDS Trek AmericaSunsailSkiboundHays TravelFalconLet's Trek Australia See First Choice's shares | SOME FIRST CHOICE BRANDS Trek AmericaSunsailSkiboundHays TravelFalconLet's Trek Australia See First Choice's shares |
| First Choice said in a statement that "the strong strategic fit of the businesses, combined with a leading management team, provides the opportunity to create one of the world's most profitable travel groups". | First Choice said in a statement that "the strong strategic fit of the businesses, combined with a leading management team, provides the opportunity to create one of the world's most profitable travel groups". |
| It added that the company would deliver "sustainable revenue and long-term earnings growth while deriving cost advantage". | It added that the company would deliver "sustainable revenue and long-term earnings growth while deriving cost advantage". |
| The two firms estimate that the merger will allow them to save about £100m a year. | The two firms estimate that the merger will allow them to save about £100m a year. |
| TUI's shares jumped by 9% in Frankfurt, while First Choice's gained more than 7%. | TUI's shares jumped by 9% in Frankfurt, while First Choice's gained more than 7%. |
| SOME TUI BRANDS 1-2-FlyAmerican HolidaysBudget TravelFox ToursNouvelles FrontieresCallers-Pegasus | |
| The move comes as travel companies try to cut costs and boost sales, at a time when many travellers are booking their own holidays and hunting deals online. | The move comes as travel companies try to cut costs and boost sales, at a time when many travellers are booking their own holidays and hunting deals online. |
| The merger comes a month after UK firm MyTravel said it would combine with Germany's Thomas Cook. | The merger comes a month after UK firm MyTravel said it would combine with Germany's Thomas Cook. |
| "The question remains whether TUI can achieve solid margins in the tourism business in the medium term," said Nils Lesser, an analyst at Merck Finck. | "The question remains whether TUI can achieve solid margins in the tourism business in the medium term," said Nils Lesser, an analyst at Merck Finck. |
| Moving parts | Moving parts |
| TUI employs about 8,000 staff in the UK and runs Thomson Holidays with nearly 730 travel shops nationwide. | TUI employs about 8,000 staff in the UK and runs Thomson Holidays with nearly 730 travel shops nationwide. |
| It recently announced plans to cut a total of 3,600 jobs across Europe, with 2,600 going in the UK. The changes are part of a 250m euro (£168m) cost-cutting programme. | It recently announced plans to cut a total of 3,600 jobs across Europe, with 2,600 going in the UK. The changes are part of a 250m euro (£168m) cost-cutting programme. |
| TUI UK's and Thomson Travel's headquarters are in Luton. Thomson Fly, the company's airline, has head offices in both Luton and Coventry. | |
| Analysts said that TUI would now be able to concentrate on its shipping business. | Analysts said that TUI would now be able to concentrate on its shipping business. |
| The German firm also announced on Monday that it made a net loss of 893.3m euros in 2006. | The German firm also announced on Monday that it made a net loss of 893.3m euros in 2006. |