Airtours bid to cost pounds 10m

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SHAREHOLDERS in Airtours will have to pay a total of pounds 9.6m to the City if their bid for rival tour operator Owners Abroad succeeds.

The figure, contained in the listing particulars of the new Airtours shares sent to shareholders, divides into pounds 1.1m for placing 50.5 million convertible shares and pounds 8.5m for the shares issued to Owners Abroad shareholders.

The bid was worth pounds 237m when it was announced on 6 January, but because Airtours' shares have slipped from 302p to close on Friday at 289p it is now worth only pounds 214m. So the pounds 8.5m amounts to about 4 per cent of the total bid, a level which has surprised the City, used to underwriting fees of half that level.