Near-collapse of online travel group to hit Geldof as shares suspended

FORMER Boomtown Rats frontman Bob Geldof is €1.4 million poorer after the near-collapse in a online travel company in which he is a major shareholder.

The Live Aid anti-poverty campaigner is one of the largest shareholders in World Travel Holdings, whose shares have been suspended on London's Alternative Investment Market pending last-ditch talks in the company's financial situation.

Mr Geldof holds €1.6 million shares in World Travel Holdings, which at one stage were worth over €1.45 million, but are now almost worthless at the shares were suspended at just 0.62p.

He acquired the shares in the company when he sold his own online travel firm, Deckchair.com, to World Travel in February 2001.

Shares in the company were suspended last Friday, after John Biles, the chairman of the group, admitted it was on the brink of financial collapse after running up debts. He warned shareholders that a receiver would be appointed if no deal could be reached with creditors.

Since 2003 the company has decided to pull out completely from the travel industry and has made efforts to diversify into the computer industry. In July it reported a pre-tax loss of €2.4m for the year to December 31, 2002.

Mr Geldof's other investments though have fared better. He is a major shareholder in Ten Alps Communications, which is a media production company based in London.

While the Blackrock, Co Dublin-born singer made a fortune from his Boomtown Rats days his involvement with the Big Breakfast television show in Britain kicked-started his television production career.