Shares in upmarket market travel operator group Travelzest plunged more than 20% after the firm announced it has ceased offer talks with Red Label Vacations.
Red Label had made an indicative proposal which offered a price at a premium to the current share price, but Travelzest felt the offer "significantly undervalued" the company.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Mark Molyneux, Travelzest's Chairman, said: "Following the termination of discussions with Red Label we will now focus all our efforts on generating profitable growth in order to maximise shareholder value. The key growth area for the company remains Canada and we will concentrate our efforts in this market.
"Creating value for our shareholders is of paramount importance to us. By divesting those assets that are not performing, particularly (in the current very difficult economic climate) in the UK, which contrasts with much better conditions in Canada, we are building a stronger business that is well positioned for future growth."
The share price fell 22.39% to 6.5p by 08:43.
NR
-
Inflation holds steady at 3.8% ahead of BoE meetingThe rate of inflation did not rise in August, but the Bank of England is still expected to keep interest rates on hold tomorrow
-
Thousands of savers with £250k pensions take cash over tax-free money and IHT fearsWith a record £70 billion withdrawn from pensions in the year to March, experts are concerned savers are making knee-jerk decisions without advice that could affect their long term wealth
