Thomas cook collapse hits shares of Indian company it once owned
When London-based Thomas Cook Group Plc collapsed under a pile of debt on Monday, investors beat down the shares of an unrelated company thousands of miles away in India, ignoring multiple clarifications that it isn’t in any way related to the U.K. firm.
Thomas Cook India Ltd. resorted to a communication blitz — exchange filings, statements to the media and advertisements in local newspapers — in the past few days to clarify that the collapsed U.K. firm exited the Indian company seven years ago.
Even so, the stock was trading down 3.7% as of 1:57 p.m. in Mumbai on Monday, set for the biggest drop in a month and compared with a 3.2% gain in the main index. The U.K. firm’s shares slumped 23% on Friday, before it filed for insolvency.
