First Choice, the UK-listed holiday company, has announced it is in talks with a number of parties over the sale of its package holiday division, causing share prices to jump by almost 13 percent. 

Rival package holiday company MyTravel is favourite to buy the business, after confirming that it has made an all-cash offer for First Choice's mainstream business and certain other operations.

Other contenders for the company include Thomas Cook and German travel company TUI. 

First Choice's package holiday division has over 300 high street branches and provides holidays for around 2.5 million customers per year. Analysts predict that the business could sell for around £500m.