Ebookers dives as Expedia pulls out
SHARES in ebookers, the online travel agent, tumbled more than 10% - 21 1/4p to 206p - today after major US rival Expedia said it is no longer interested in buying it.
InterActiveCorp, Expedia's parent company run by entertainment mogul Barry Diller, said in a statement today: 'In light of recent speculation InterActiveCorp announces it has decided not to participate in discussions relating to a possible offer for ebookers and does not currently intend to make an offer.'
But Expedia is not shutting the door entirely. Though such a statement would, under Takeover Panel rules, normally bar it from relaunching a bid within six months, the statement continued: 'IAC reserves the right to make or participate in an offer for ebookers in the event that the board of ebookers agrees to recommend an offer by IAC or a third party announces a firm intention to make an offer for ebookers.'
That was taken as a hint that Expedia's great rival Travelocity may yet launch its own bid.
Shares in ebookers picked themselves up from a two-and-a-half year low in August after its founder, chairman and 41% shareholder Dinesh Dhamija said the firm had received approaches.
