Sabre Expects to Acquire TravelocityAP , Associated Press
Apr. 9, 2002 8:44 AM ET
DALLAS (AP) _ Sabre Holdings Corp. said Monday it has acquired enough shares to take full control of Travelocity.com Inc. and expects to complete its $420 million takeover of the Internet company on Thursday.
Under the tender offer, the travel reservations company paid $28 per share for the 30 percent of Fort Worth-based Travelocity that it did not already own. The price represented a 46 percent premium over Travelocity's closing price before Sabre's tender offer was announced.
Sabre originally had offered $345 million for the outstanding Travelocity shares. A special committee of Travelocity directors opposed the first offer, saying at least 11 shareholder lawsuits were filed to block the sale.
After Sabre raised its bid, the committee endorsed the offer. Sabre said it had agreed to settle the shareholder lawsuits.
Sabre, based in the Fort Worth suburb of Southlake, estimated that Travelocity shareholders tendered 14.3 million shares by the deadline late Friday. Combined with its previous holdings, Sabre said that would give it 96 percent of Travelocity's common stock.
Travelocity shares that were not tendered will be converted into a right to receive $28 without interest.
Sabre officials have said that Travelocity, which caters primarily to consumers, will complement Sabre's GetThere unit, which sells travel to corporations and travel agents.
In trading Monday, Sabre shares rose a penny to close at $45.59 on the New York Stock Exchange. Travelocity shares finished unchanged at $27.98 on the Nasdaq Stock Market.
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