No thanks to the fuck-up of a certain German bank--Deutsche--but no matter. Onward!
From: TUI Investor RelationsSent: Thursday, June 18, 2009 12:06 PM
Subject: TUI: Open letter to our Shareholders
Importance: High
Dear Shareholder,
It will probably have not passed your notice that on Tuesday, 16th June the TUI share price dropped by more than 18% from 6.13 Euro to around 5.02 Euro. At almost 8 million shares, the number of shares traded on this day was well above the average. This development can be attributed to an analyst report on TUI by Deutsche Bank. On this day they published a research update setting a price target for the TUI share of 1.90 Euro and subsequently a sell recommendation.
Following a review of this valuation by TUI, it became apparent that the update contained technical mistakes in the sum of the parts valuation. This concerned in particular the valuation of the shareholder loan to TUI Travel and the pensions, the effects of which totalled approx. 4 Euros per share. TUI discussed this with the analyst at Deutsche Bank. Deutsche Bank corrected the technical errors in their valuation and released a corrected version to the original report on Wednesday afternoon. The revised target price is now 4.40 Euro (2.50 Euro higher than before). The sell recommendation remains unchanged. On analysis, whilst the bank has corrected the mistakes, they have now also adjusted some of their original assumptions to the detriment of the TUI valuation. For example the report now includes a conglomerate discount of 20%. On the basis of the assumptions published on Tuesday and only taking into account the correction of the mistakes, the calculated TUI valuation would be around 6 Euros per share. This was virtually the share price level before the report was published and would probably not have justified a sell recommendation.
Best regards,
Berlin, Hanover, June 2009
TUI AG
The Executive Board
In case you have any further questions, please do not hesitate to contact us.
Posted by guest , Jun 18, 2009 4:22PM
Remember when LIBOR was at 6.88%? Those days were AWESOME
Posted by guest , Jun 18, 2009 4:28PM
Sincerely, I find myself less and less excited to read dealbreaker. Most of the funny's gone and the timing's flown south too.
Posted by guest , Jun 18, 2009 4:30PM
@2 is the guy who was pissed bess posted about the shorts.
Posted by guest , Jun 18, 2009 4:31PM
D. Bank: our bad
Posted by guest , Jun 18, 2009 4:35PM
@2 - Don't know what you have been reading, but DB has been god damn funny lately. We had Shark Day for crying out loud.
We use words like honor, blanus, lobsterclops. To you they are just a punch line.
Posted by Meatbone9 , Jun 18, 2009 4:37PM
Nice. Interesting to see if a junior at Duetche just got himself pushed in. Also, where did the super long post re: scumbag hedge fund scumbags investors while dealing with other scumbags go?
Posted by guest , Jun 18, 2009 4:38PM
@5 agreed. kill yourself, 2.
Posted by guest , Jun 18, 2009 4:40PM
@2- have you read any other posts today? wow, a post about TUI/DB wasn't funny, omg, Dealbrker sucks! /sarcasm
Posted by guest , Jun 18, 2009 4:41PM
@2 = meg reilly
http://dealbreaker.com/2009/06/update-tim-geithner-is-in-no-w.php
Posted by Bess Levin , Jun 18, 2009 4:46PM
@2- Maybe it's just that the life you lead in Plano, TX is so much more exciting than anything we could offer you on DB?
Posted by guest , Jun 18, 2009 4:46PM
@ TUI executive board, announce a share buyback
Posted by guest , Jun 18, 2009 4:53PM
@10/Bess:
NICE! u go girlfriend.
Posted by guest , Jun 18, 2009 4:59PM
hahaha, Bess must know about http://whatismyipaddress.com
Posted by guest , Jun 18, 2009 5:11PM
@6 Totally correct thought; some kid is definitely crying to his slightly-overweight girlfriend in London's Murray Hill equivalent tonight talking about how "I really fucked up today, but at least I don't work at Jefferies"
Posted by guest , Jun 18, 2009 5:11PM
getting a freaky reverse-stalker vibe knowing Bess is reverse-stalking me
Posted by guest , Jun 18, 2009 5:20PM
@2 could not disagree more, BL has been bringing it, particularly the last two days.
Posted by guest , Jun 18, 2009 5:29PM
@2 - I want to hurt you. Hurt you real bad. I want burn your soul with anal bleach.
Posted by Chuck Krug , Jun 18, 2009 6:15PM
this tui looks like a good short