Thursday, August 13, 2009

Container Shipping Line Saga Continues

TUI shares rise after further talks on Hapag-Lloyd refinancing
Shipping News Feature

HANNOVER, GERMANY – More activity at the talks over the funding options for Hapag-Lloyd resulted today in a share price jump for TUI who own 43% of the group.

After announcing that the €1.75 billion package originally proposed was insufficient, TUI seemed poised to request state aid today following an announcement in which they stated an extra €200 million was now required.

A TUI spokesman said that the group acted in “the role of a bank” for Hapag-Lloyd and stated they expected a positive reaction to the revaluation of the group during the anticipated recovery. There was no comment from the Albert Ballin consortium, the other major shareholding group in Hapag-Lloyd.

Today’s rise in the stock price means TUI now has a market value of €1.35 billion.

For background information on this piece see HSG stories 29th July and yesterday.