The recent surge in Thomas Cook's (TCG) share price is easily explained. Fosun International, China's largest privately held conglomerate, has taken a 5 per cent stake in the travel operator. The Chinese group recently acquired French holiday company Club Méditerranée, although it also has a vast range of interests from property to pharmaceuticals. Fosun paid £91.8m - or 125.75p a share - for 5 per cent of Thomas Cook, but the travel company's bosses said Fosun could increase its stake to up to 10 per cent in the coming years by purchasing more shares on the open market.
Now, there's growing speculation that the Chinese group could buy the whole company, just three months on from Harriet Green's controversial departure. Thomas Cook was on the brink of collapse before Ms Green stepped into her role as chief executive and steered the group's eventual recovery. But Thomas Cook's board has now raised the maximum stake a non-European company can buy under its articles of association from 40 per cent to 45 per cent. This has only fuelled to the fire.
