When TUI become one

First of all, talks are further advanced and both boards have agreed to a merger in principle.

TUI AG has also jumped one significant barrier by securing the blessing of its largest investor, Russian steel tycoon Alexey Mordashov.

The UK company’s shareholders are yet to show their hand but after balking at the prospect of a nil-premium merger last time round, it appears as though the deal has been structured in a way to convince them they are gaining value.

Banking sources point out that TUI AG’s sum-of the-parts value - the combined estimated value of each of the conglomerate’s different assets, including its 55pc stake in TUI Travel - will play a key role in persuading the plc’s shareholders to sign up.

Currently, it is estimated that TUI AG trades at a 20-25pc discount to analysts’ sum of the parts valuations. So by receiving shares in TUI AG, TUI Travel shareholders will be effectively gaining a 55pc stake in their own company - and other assets - for less than it is worth. That’s a lot of extra currency for the holiday kitty.

After seven years of waiting, it looks as though the two TUIs will finally become one.

Safeguarding financial stability is a thankless task

By the time Sir Jon Cunliffe was knighted in 2010, he’d spent more than 30 years in the civil service. Three years later, he joined the Bank of England as its deputy governor for financial stability.

His impressive set of skills helped him handle questions from the media with ease at the Bank’s latest Financial Stability Report.

Now, amid fears that Britain could be heading towards another housing bubble, Sir Jon has been thrust into the limelight, and is one of the key figures in charge of guiding the Bank through uncharted waters.

Ironically, if he does his job well, in a decade’s time, Sir Jon won’t be remembered. As he recounts in this newspaper, Sir Jon is used to being in the midst of events, albeit behind the scenes. He was there for the original “Ken and Eddie show” and he has the picture to prove it.

Perhaps safeguarding financial stability is a thankless task, but considering what’s at stake if it all goes wrong, let’s hope he’s remains in the background.

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