TUI shareholders rejected a demand by Norwegian shipping billionaire John Fredriksen for an audit of the company's contribution to the financial rescue of German ocean container carrier Hapag-Lloyd.
The motion by TUI's second largest investor was defeated by a 68.7 percent majority at the company's annual general shareholders meeting in Hanover on Feb. 17, TUI said.
Fredriksen, who claims TUI contributed disproportionately to the rescue of Hapag-Lloyd, cut his direct stake in the German tourism company this week to 15.7 percent from around 19 percent.
But the Norwegian ship-owner increased his overall investment in TUI, which owns just over 43 percent of Hapag-Lloyd, by buying convertible bonds.
TUI chief executive Michael Frenzel said the company opted to help Hapag-Lloyd because the carrier's bankruptcy "would have caused a dramatic and lasting reduction in the value of the TUI share."
Following a $1.25 billion capital injection by its investors -- TUI and the Albert Ballin consortium -- coupled with an additional $1.8 billion state guaranteed credit line, Hapag-Lloyd is "equipped to weather even a more prolonged crisis and is currently no doubt one of the most comfortably funded container lines in the world," Frenzel told the shareholders meeting.
Frenzel said the improvement in Hapag-Lloyd's earnings in the final three months of 2009 has continued into 2010.
"Our task over the next few months will be to explore whether this positive trend … will result in options to reduce our funds invested in Hapag-Lloyd earlier than expected."
TUI, which has a $3.4 billion exposure to Hapag-Lloyd in equity and loans, has said it wants to exit container shipping to focus on its core tourism operations.