Australian online travel company today announced US travel giant Expedia had made a $703.1 million buyout bid. There’s more on that here.
The market has responded positively to the deal, with Wotif up 24.62% to $3.29, a smidge under Expedia’s offer of $3.30 which includes a special dividend.
The chart below shows how the company’s shares have tracked over the past 12 months.
CMC Markets chief market strategist Michael McCarthy said: “In a neat twist, one of the main drivers of Wotif’s depressed share price was a December 2013 profit warning that cited international competitors – including Expedia – as a central reason for lower margins”.
McCarthy said Expedia made it clear the company is after reach in fast growing Asian travel markets.
“The bid saw Wotif’s shares soar,” he said. “Shareholders recalling the 2013 high above $6 may be less than thrilled at the speedy acceptance of the bid by founding executives.”