Mordashov increases stake in TUI to 15.03%
Russian billionaire Alexei Mordashov has increased his stake in TUI, one of the leading European travel and shipping groups, to 15.03 per cent, a statement to the stock market said yesterday.
Clashing views: Russian billionaire Alexei Mordashov (left) backs the strategy of TUI boss Michael Frenzel, while JohnFredriksen (right) has led a shareholder revolt against the company's management
The move, from a previous holding of around 10 per cent, put Mr Mordashov roughly on par with Norwegian investor John Fredriksen and underscored an ongoing battle over how the company should develop.
A statement issued by the Russian's Cyprus-based S-Group said the increase 'strengthens our position as a long-term strategic investor and our commitment to developing the tourism business of TUI.'
Mr Mordashov backs the strategy of TUI boss Michael Frenzel, while Mr Fredriksen has led a shareholder revolt against the company's management and bid earlier this month for Mr Mordashov's 10 per cent stake to gain a decisive holding in TUI.
Mr Frenzel wants to sell the group's Hapag-Lloyd shipping unit to concentrate on tourism, where TUI is an European leader.
The statement issued yesterday by S-Group backed that position, saying: 'We believe that the separation of TUI's container shipping division, Hapag-Lloyd, serves the best interest of all shareholders.' Hapag-Lloyd is the world's fifth-biggest shipping line.
Mr Fredriksen, who made a fortune in the container shipping sector, challenges such a move and demands that shareholders be consulted on the matter. The Norwegian has proposed that each activity be run separately, and that investors be able to decide whether to back one or both units.
He has also called for Mr Frenzel's resignation, noting that TUI has lost much of its value during his 14-year reign.
Mr Mordashov reiterated his backing on Monday, with S-Group's statement saying it 'continuously supports the TUI executive board and the supervisory board in the decision to focus the business on tourism.'
Clashing views: Russian billionaire Alexei Mordashov (left) backs the strategy of TUI boss Michael Frenzel, while JohnFredriksen (right) has led a shareholder revolt against the company's management
The move, from a previous holding of around 10 per cent, put Mr Mordashov roughly on par with Norwegian investor John Fredriksen and underscored an ongoing battle over how the company should develop.
A statement issued by the Russian's Cyprus-based S-Group said the increase 'strengthens our position as a long-term strategic investor and our commitment to developing the tourism business of TUI.'
Mr Mordashov backs the strategy of TUI boss Michael Frenzel, while Mr Fredriksen has led a shareholder revolt against the company's management and bid earlier this month for Mr Mordashov's 10 per cent stake to gain a decisive holding in TUI.
Mr Frenzel wants to sell the group's Hapag-Lloyd shipping unit to concentrate on tourism, where TUI is an European leader.
The statement issued yesterday by S-Group backed that position, saying: 'We believe that the separation of TUI's container shipping division, Hapag-Lloyd, serves the best interest of all shareholders.' Hapag-Lloyd is the world's fifth-biggest shipping line.
Mr Fredriksen, who made a fortune in the container shipping sector, challenges such a move and demands that shareholders be consulted on the matter. The Norwegian has proposed that each activity be run separately, and that investors be able to decide whether to back one or both units.
He has also called for Mr Frenzel's resignation, noting that TUI has lost much of its value during his 14-year reign.
Mr Mordashov reiterated his backing on Monday, with S-Group's statement saying it 'continuously supports the TUI executive board and the supervisory board in the decision to focus the business on tourism.'