After Friday's reports that Thomson Travel Group was in discussion with C&N Touristic, the company announced this morning it had recommended shareholders to accept a bid from rival German group Preussag.

The new £180p per share offer tops Friday's price by 20p and values the company at £1.8 billion.

The takeover means Preussag will remain Europe's largest travel company, but to get the deal past the European Commission, Preussag will have to sell their stake in Thomas Cook Holdings, Britain's third-largest tour operator.

Last year, the European Commission blocked Airtours' attempt to buy its smaller rival First Choice due to fears that it would create a monopoly in the UK travel industry. Carlsson or Kuoni are understood to be likely bidders for Thomas Cook.

Season workers are unlikely to see any change in operations in the short term, although those fortunate enough to have picked up shares when they were available to staff at 80p will be smiling.

Thomson Travel Group includes Thomson Holidays, Lunn Poly, Britannia Airways, Jetsave, Crystal Holidays, Magic Travel Group and Simply Travel within its portfolio.