Sabre Holdings Corp. increased its offering price for Travelocity`s publicly held shares from $23 to $28 per share, and that prompted Travelocity`s board to recommend that shareholders accept the offer.
The new offer, with a total value of $420 million, represents a 21.7% hike over the earlier $23-per-share proposal, which a Travelocity special committee of independent, outside directors had rejected as inadequate.
The special committee found the new offer to be “adequate.” Sabre already controls 70% of Travelocity
, and its current offer is contingent on its obtaining a total of at least 90% of the stock.
also said it would settle all pending shareholder litigation that had been filed to prevent Travelocity from accepting the initial offer.
Related stories on ITN:
(07/03/2002) Sabre Bids to Buy Rest of Travelocity
(05/03/2002) Travelocity Reports Sabre`s Proposal is Inadequate
(19/02/2002) Travelocity To Become A Wholly Owned Sabre Company