Priceline.com Is Attractive Buyout Candidate: Analysts

NEW YORK— Analysts are reporting that Priceline.com is starting to look like an attractive takeover candidate, thanks to is low stock price, which is currently around the $4.95 mark, according to a Reuters report. “With a stock price that is depressed, there is the potential for other companies to do a deal that could be an accretive deal,” said Jake Fuller, an analyst at Thomas Weisel Partners. “Given that, and the financial scenario, I think you have seen increased attention paid to Priceline as a potential acquisition target.” While the report indicates that Priceline, based in Norwalk, CT, is not looking to be acquired, a merger could make sense, since a larger company would give Pricelines products broader distribution. Priceline is unique amongst the dot-com community in that it makes money, has no debt and has seen earnings grow. That scenario would allow a suitor t ink a deal that would boost earnings immediately, said the report. “Financially there is incentive for them to be bought. Strategically, there is incentive for them to be bought, but that doesnt necessarily mean something is going to happen. It could happen,” Fuller said. One possible suitor could include Cendant, said analysts.