Naturist holiday firm bid target

The owner of the UK's biggest naturist holiday operator yesterday confirmed it was in takeover talks following rumours of a bid approach valuing the firm at £40 million.

Travelzest, which owns nudist firm Peng Travel as well as luxury brands such as Best of Morocco and Captivating Cuba, did not confirm potential suitors but it is understood management are preparing a bid at 20p per share.

Chief executive John Carroll was reported to be leading a joint bid with Canada's Hunter family, who own the Sunwing tour operator, for the Gloucestershire-based group.

If the deal goes ahead, the Hunters would have 55 per cent of the new venture, while Carroll and his finance director Jack Fraser, who together currently own 17 per cent, will take the rest.

Travelzest has been a mooted takeover target for some time with travel firm Thomas Cook and investment company Gartmore mentioned as potential suitors.

But yesterday's statement stressed discussions were at the "very early stages" and there was no certainty the talks would result in an offer being made.

Travelzest posted a pre-tax loss for the year to 31 October of 9.9m, compared to a 42,000 loss the previous year, but this included the impact of a company-wide restructuring.

In its last trading update in March, the group said departures for winter 2010-2011 were up 18 per cent, but bookings for departures in summer 2011 are currently down 18 per cent.