NewsFinder: "Sabre Holdings Corp. (TSG) Thursday announced an agreement by its Travelocity Europe subsidiary to buy Lastminute.com (UK:LMC) in cash deal that values the British-based online travel services company at 577 million pounds ($1.1 billion), rising to 606 million pounds including debt. Sabre is offering 165 pence a share. The terms set a 7.8% premium to Lastminute's close in London Wednesday at 153 pence, after the stock rallied 45% on deal expectations. Sabre expects the acquisition to add to its earnings on an adjusted basis in 2006. 'We expect this combination would provide us greater opportunity to profit from the fast-growing European online segment,' the company said in a statement. In the six months to march 31, Lastminute said gross profit rose to 82.9 million pounds from 56 million pounds in the year-ago period as its loss for the period widened to 45.5 million pounds from 39.5 million pounds."
Larger target = larger, softer, underbelly to challenge.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment