Thomas Cook approached by potential bidders as group's woes continue

Thomas Cook shares took off on Tuesday following reports that it had been approached by multiple parties regarding a potential takeover of its tour operating unit and the entire company.

Both US private equity firm KKR & Co and Swedish buyout group EQT Partners were said by analysts to be potential buyers for the group, while Chinese outfit Fosun was understood to be among those who had lodged preliminary interest in Thomas Cook's tour business, according to Sky News.

The almost 200-year old British travel group, which put its airline operations up for sale as it shuttered stores earlier in the year, had reportedly since brought in advisers from AlixPartners to balance its books and assist with cost-reduction plans, while its lenders hired FTI Consulting to advise on their financial exposure to the company.

According to Sky, at the weekend insiders said that both the company and its lenders were bracing for the possibility of negotiations regarding the company's future capital structure.

Back in March, Thomas Cook began a strategic review of its money division as part of yet another effort to streamline operations and shift focus back to its core holiday business following multiple profit warnings and an 80% drop in value in 2018.

Thomas Cook cited weak demand, increased competition and last year's UK heatwave for its poor performance, but also acknowledged that changing travel habits played a role.

Indeed, the company was under increasing pressure to shrink the number of physical stores, which at last count numbered 566.

Chief executive Peter Fankhauser said: "Customers don't just want to book their holiday online, they also want to pick the room in which they will stay or their spot by the pool before they even set off."

Despite having full-year sales of roughly £9.6bn, the company's equity was valued at just £376.3m.

Thomas Cook also warned earlier in April that it may have been in breach of its own borrowing limits with the recent need to ground its Boeing 737 Max jets dealing the troubled company a further blow.

As of 1010 BST, Thomas Cook shares had soared 16.78% to 28.53p.