Travelocity Backs Sabre’s Buyout Bid

NEW YORK— Travelocity.com urged shareholders on March 18 to accept a $420 million cash takeover bid from Sabre Holdings Corp., after the travel reservations giant sweetened its offer by 22%. The deal to acquire the 30% in Travelocity that Sabre does not already own would give Travelocity shareholders $28 in cash for each share and create one of the worlds most far-reaching travel companies, offering reservation services to everyone from travel agents and corporate clients to Web-savvy bargain-hunters. It also would reunite fully two former allies. Sabre spun off Travelocity.com in March 2000 through a reverse merger with Preview Travel, but maintained a 70% equity stake and 15% voting stake in the company. In recent months, Sabre has watched a number of its biggest rivals swing deals to increase their Internet bulk, including USA Networks acquiring a controlling stake in rival Expedia and Cendant buying Cheap Tickets. SOURCE: Reuters