Geldof sees slide in WTH stake

SIR Bob Geldof looked smart last year when he sold his online travel company, Deckchair, to rival World Travel Holdings. But he looks less clever now.

The former Boomtown Rat, along with Deckchair's other owners, took £2m in WTH shares, then worth 18.5p each, as part payment. At 2.25p, their stake is now worth just £260,000. Geldof is thought to have invested £3m of his own money in Deckchair when it was set up in 1999.

WTH promised to pay up to a further £6m, also in shares, over three years, depending on performance. But World Travel is struggling.

On Thursday, it warned 'all parts of the business' are still suffering from the aftermath of 11 September, and it has been forced to slash costs to match. Nine-month losses are £5m, including £1.3m in the last quarter.

Sir Bob, a non-executive of World Travel, is paid £100,000 a year for helping to market the business.