£8m boost for Online Travel

ONLINE Travel Corporation will announce this week that it has raised £8 million in a share placing to help expansion.

Broker Altium Capital has found institutional takers for an extra 50 million shares at about 15p each. Mark Jones, chief executive of the internet travel agent, will use its full-year results on Tuesday to explain his plans for the cash.

City gossips were suggesting-last week that the move was driven by the need to keep the lossmaking dotcom afloat and that without it, the company might struggle to meet its target of trading profitably by 2004.

Online Travel Corporation runs about 100 travel sites, including bargainholidays. com and ifyouski.com. Its shares closed last week at 17 1/4p, valuing the company at £21.83 million.