Management in talks on Travelzest takeover

Travelzest shares jumped 18% today after the company best known for its nudist holidays confirmed it is in takeover talks.

The company declined to be more specific apart from the usual statement which makes mention of the "early stages of discussions".

Authoritative reports say the company behind naturist holiday business Peng Travel is subject to a bid from management worth 20p a share, or £38 million including debt.

The shares leapt by 2.5p to 16.75p, valuing the AIM-listed outfit at £24.3 million.

Travelzest has been a mooted takeover target for some time, with everyone from Thomas Cook to Gartmore rumoured as a buyer.

However, It turns out that the bid actually comes from management, led by chief executive Jonathan Carroll.

According to The Times, the buyout is also backed by Canada's Hunter family, who own the Sunwing tour operator.

Carroll and his finance director, Jack Fraser, own 17% of Travelzest.

If the deal goes ahead as planned, the Hunters would have 55% of the new venture, with Carroll and Fraser taking the rest.

Travelzest ran into controversy two years ago when the founder, Chris Mottershead, was suspended from the company over "a potential misappropriation of company funds". He has since left the business that he floated in 2005. Mottershead had previously worked for TUI and Airtours.

Travelzest's other brands include specialist companies Best of Morocco and Captivating Cuba.

The statement today said: "There is no certainty that the talks will result in an offer being made for the company."