News round up: Thomas Cook, Oil reserves, 50p top rate, Growth plans, and Greece.

The chairman of Thomas Cook Group plc (LON:TCG) has rejected a proposal by a group led by two leisure industry veterans and backed by some shareholders of the travel operator to inject £400m into the company. Frank Meysman dismissed the plan after representatives of the group met the Thomas Cook chairman two weeks ago, according to one person with knowledge of the talks.

The plan had the support of Invesco, its second-largest shareholder with 10.44 per cent, and several other shareholders, two people familiar with the talks said. The group, including Invesco, is no longer working on the plan, the people said. The plan envisages the individuals providing some of the fundraising. With its market value at £199m, those backing the £400m fundraising would be in line to own around two-thirds of the company.

The comments came as the company announced it would put its Indian business up for sale – in which the London-listed business has a 77.1 per cent stake – as it tries to reduce its net debt of about £900m through disposals. At the same time, it announced a first-quarter loss of £91m, double the £37m loss a year earlier, writes the Financial Times.

Oil reserves

David Cameron is ready to release oil reserves in tandem with the US in a move that could help British motorists and President Obama’s re-election prospects. Mr Obama, under pressure to cut fuel prices for American drivers before polling day in November, raised the issue with the Prime Minister during their Oval Office talks on Wednesday.

With energy prices being pushed up by the diplomatic stand-off with Iran over its nuclear program, Mr Cameron said that he would treat such a request positively, according to British officials, The Times reports.

50p top rate

The Liberal Democrats have dropped their opposition to scrapping the 50p top rate of tax and offered the Conservatives a Budget deal that would cut taxes for the highest earners. Government sources last night said that Nick Clegg, the Deputy Prime Minister, was prepared to accept the end of the 50p tax rate in exchange for tax cuts on low earners and tighter tax rules.

However, sources close to George Osborne, the Chancellor, described as “wild speculation” reports that the Conservatives have decided to accept the offer and scrap the top rate of income tax. Senior ministers will spend the weekend in 11th-hour talks about the Budget package before Mr Osborne presents his package next Wednesday, The Telegraph says.

Growth plans

Two of Britain’s leading businessmen have raised serious questions over the Government’s growth plans just as ministers gear up to deliver next week’s Budget. Willie Walsh, chief executive of British Airways owner International Airlines Group, and Stephen Hester, chief executive of the Royal Bank of Scotland, have warned that UK companies lack the confidence to invest. Mr Walsh mocked the Coalition, saying it changed its policy for growth “every other week”.

He accused ministers of being more “Norse than Inuit” – referring to the Greenland community which failed to adapt to environmental changes – with ministers refusing to recognise the power shift from West to East. Mr Hester, of RBS, called for a “circuit-breaker” to restore confidence or risk Britain falling behind globally, according to The Telegraph.

Greece

Greece won approval from the International Monetary Fund for a €28bn loan yesterday as part of the country’s second bailout after its successful debt swap deal. The IMF deal ended months of uncertainty and came with the immediate release of €1.65bn (£1.37bn) to help Athens meet immediate commitments. But although Eurozone markets and the single currency enjoyed another mostly calm and positive day, the rating agency Standard and Poor’s signalled that the Greek crisis was far from over.

It assigned the new Greek bonds a CCC score, meaning that they were still vulnerable to default, and said that Greece’s sovereign rating would remain in selective default until the exchange was completed next month, The Times says.