News

FIRST Choice and Holidaybreak are believed to be on the acquisition trail - with both tipped as possible buyers for either Saga or Mark Warner.

Saga Group chairman Roger De Haan has announced his retirement and has appointed UBS Investment Bank to advise on the future of the group, sparking a rush of interest in the City.

The direct-sell grey market giant last year made a pre-tax profit of £48 million, and has a possible price tag of at least £600 million. Analysts put most of the value on its insurance business. Options could be a sale or flotation, or an acquisition by a venture capital firm.

Analysts tipped First Choice as a possible buyer, although product director Tim Williamson declined to comment. Holidaybreak group chief executive Richard Atkinson said: “We would be interested in looking at any opportunity like this.”

Upmarket all-inclusive operator Mark Warner is also thought to be up for grabs, although its managing director David Hopkins insisted a sale “is not on the agenda”.

The privately-owned company is seen as a good fit for First Choice’s Sunsail operation, which has attempted to expand its land-based operation. Mark Warner would achieve that in one fell swoop, said observers.

First Choice and Holidaybreak are both in the rare position of having had decent years - something the majority of their rivals have been unable

to say.