Russian Billionaire to Reshuffle TUI’s Business, Kommersant Says

Aug. 13 (Bloomberg) -- Russian billionaire Alexey Mordashov who has a 25 percent stake in Hannover-based tourism operator TUI AG, plans to restructure the company’s business to boost profitability, Kommersant reported.

TUI AG may fully merge with its TUI Travel unit, of which it currently owns 55 percent, to consolidate profit and cut costs, the Moscow-based newspaper said, citing a report by Morgan Stanley. Two other division of TUI are hotels and cruise shipping, Kommersant wrote.

Maxim Shemetov, spokesman for Mordashov’s Moscow-based S-Group Capital Management, which holds TUI shares, was not available for comment when Bloomberg News called.

To contact the reporter on this story: Ilya Khrennikov in Moscow at ikhrennikov@bloomberg.net

To contact the editor responsible for this story: John Viljoen at jviljoen@bloomberg.net