[250711.EN.SEA] TUI Ponders Delay Of Hapag-Lloyd Equity Stake Sale Until Prices Improve

GERMAN travel giant TUI said it might delay selling its 38 per cent shares of Hapag-Lloyd, Germany's biggest container carrier, because it failed to find the right buyer.

"We need a more stable market environment. At the moment it is impossible to get a fair valuation," an insider told London's International Freighting Weekly.

Although some companies from China, Singapore and the Gulf state of Oman expressed interest in buying the shares, no concrete agreement has been signed.

The euro zone debt crisis and US budgetary problems are cited as among some of the reasons for the lack of interest from potential investors, said the report.

If the market continues to be slack, TUI may sell its stake to Hapag-Lloyd's majority owner, the Albert Ballin consortium of investors in January.

Under prior agreement, if Albert Ballin fails to fund the acquisition, TUI can then sell the shares to a third party, and the consortium must surrender a 12 per cent stake at the same price to give the potential buyer a majority control.

Source : HKSG, 25.07.11.