TRAVEL giant Holidaybreak saw its share price soar after it revealed it was in takeover talks.

Shares in the Cheshire group, whose brands include educational holiday specialist PGL, were up by more than 17% at one point yesterday after it announced it was in early stage talks.

Its share price closed up 15% at 367p.

Reports suggested that the potential buyer was another travel firm – with some sources suggesting TUI Travel could be the bidder.

Holidaybreak said: “As a result of a movement in Holidaybreak’s share price, Holidaybreak announces that it is in discussions with a third party which may or may not lead to an offer for Holidaybreak.

“A further announcement will be made in due course.”

Under chief executive Martin Davies, who took charge in April last year, Holidaybreak has looked to cut its debt while focusing on the education market.

In December, Holidaybreak paid £30.9m for a 50% stake in Berlin-based educational tour accommodation group Meininger. It has an option to buy the remaining shares in Meininger over the next two or three years.

Last month, it was reported that Holidaybreak was looking for buyers for subsidiaries including adventure holidays brand Explore. It was suggested that the group was also considering a later sale of its camping division, including Eurocamp and Keycamp, leaving it free to concentrate in its educational business.

Later last month, it announced it was selling West End Theatre Bookings for £10.9m to Encore Tickets.