Just weeks after completing the purchase of Travelocity, online travel service Expedia (EXPE) said it is also acquiring rival Orbitz Worldwide (OWW) for an enterprise value of $1.6 billion, or $12 a share in cash. Shares of Hotels.com and Hotwire operator Expedia rose 12.8% to 88.23 in the stock market today. Shares of Orbitz, which operates CheapTickets and HotelClub, surged 20.8% to 11.63. Both companies’ boards of directors have approved the
Orbitz Worldwide (OWW) stock was down more than 8% in midday trading in the stock market today after Goldman Sachs downgraded the online travel agency to sell from neutral, citing its higher-risk profile vs. industry peers. Goldman noted in a Wednesday research report that Orbitz shares were up 23% this year vs. an average 5% increase for its industry group. “With (Orbitz) stock trading at a premium to the group on a growth relative basis, we
Orbitz (OWW) stock was down 2.5% in midday trading in the stock market today after Cowen and Co. initiated coverage with a rating of market perform, or hold. Cowen also set a price target for Orbitz of $7, right about where it’s been trading since early November, and right where it was trading midday Monday. Analysts Kevin Kopelman and Andrew Marok said in a research report Monday that a new Orbitz rewards program called “Orbucks,” in which