Shareholders of tour company MyTravel suffered more pain after it emerged their holdings risked being significantly diluted.

The group, which announced losses of £910.9 million in 2002, said moves to restructure its balance sheet were likely to have a major impact on investors.

Shares slumped 33 per cent following the announcement, which came at MyTravel's annual meeting in Manchester.

While the company, which operates at Gatwick Airport, has not disclosed its options, analysts believe MyTravel could be forced into a share issue, which will dilute the investments of current shareholders.

Tuesday March 23, 2004