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Thomas Cook Stock Worth Three Pence After Fosun Rescue Plan, Citigroup Says

  • Shares plunge 60% in two days amid proposal to dilute stock
  • Bondholders may not accept equity swap after the drop: Citi
A pedestrian passes a Thomas Cook Group Plc travel agency store in East Grinstead.

A pedestrian passes a Thomas Cook Group Plc travel agency store in East Grinstead.

Photographer: Chris Ratcliffe/Bloomberg

Thomas Cook Group Plc’s proposed recapitalization suggests its stock is now worth just 3 pence a share, according to the tour operator’s biggest bear.

Citigroup Inc.’s James Ainley, who sent the travel company’s shares plummeting in May by suggesting they were worthless, calculated his new price target as a rescue plan devised by shareholder Fosun International Holdings Ltd. threatens to dilute its overall stock by about a billion pounds ($1.26 billion), he wrote.