The 204-page document, designed to help Jetset Travelworld shareholders make up their minds about the merger proposal, says also that the enlarged operation would have some 2600 staff (including NZ and the USA) and market capitalisation of about $351m.

It’s estimated the merger, which in fact sees JTG acquiring Stella Travel, will cost about $4m to finalise, but should bring savings of $10m by 30 June 2012.

Jetset Travelworld directors have already approved the plan and are recommending shareholder acceptance.

The memorandum devotes considerable space to the perceived advantages and disadvantages of the merger.

There’s also the opinion of an "independent expert", financial services firm Deloitte, which describes the deal as "fair and reasonable".

But there are warnings. Deloitte says there could be adverse reaction from a number of stakeholders, including suppliers and agents.

"In particular, franchisees may not be supportive of the merger if they perceive that it may be more difficult to deal with a larger operation", it says.

The merger could also bring a "more aggressive competitive response" from key travel industry participants such as Flight Centre.

The memorandum contains a wad of Stella and JTG financial data.

Stella data shows the group posting a 10.6% drop in total transaction value to around $3.3 billion for the year ended last month.

It says the first half of the financial year was affected by the Global Financial Crisis.

Though demand held steady, business was being done at lower prices.

The good news, Stella says, is that a cost-cutting program launched in the 2009 financial year has led to a 10.9% reduction in costs in the year just ended.

Employee costs are down 12.2%.