Mere days after announcing a US$4.5 billion buyout effort, USA Interactive is backing away from the deal, citing sour market reaction to the strategy.The company intended to acquire all the outstanding shares of its subsidiaries Expedia, Hotels.com and Ticketmaster. But investors expressed wariness, sending shares down after the plan was unveiled.”It’s interesting that they would pan it,” Morningstar.com stock analyst George Nichols told the E-Commerce Times. “Often, a move like this would help the stock because investors dislike complex companies. We’ve seen that with companies like AOL, which have a bunch of smaller firms under them. With too many subsidiaries, a company can be hard to value.”Each buyout was to involve an exchange of stock. USA had valued each of the subsidiaries at a 7.5 percent premium over its closing price.After the deal was scuttled, USA released a statement about what had happened.”Our announcement began a process that is out in the open, totally transparent and that has, we believe, an inevitable conclusion: the unification of USA with strategies and incentives totally aligned,” the company said in the statement.”We recognize, however, that it will take some time for everyone involved to digest all the information, understand all the issues, and… Read full this story
- USA Today owner rejects bid from hedge fund-backed newspaper rival
- Liverpool make huge £45m bid for Arsenal and Chelsea target
- Chelsea eye HUGE £45m bid for Barella and £40m move for Paredes
- Huge cash bid for Dewsbury 'spring clean'
- Businesses urge ‘fundamental rethink’ of post-Brexit immigration plans
- Scottish businesses urge ‘fundamental rethink’ of post-Brexit immigration plans
- Huge drive to underpin innovation: Mark Redmond
- Aodhan Connolly: Time to rethink outdated retail rates in Northern Ireland
- Democrat Julian Castro launches bid for US presidential race
- Democrat Julian Castro launches bid for US presidency
USA Rethinks Huge E-Commerce Bid have 303 words, post on www.technewsworld.com at June 6, 2002. This is cached page on Vietnam Colors. If you want remove this page, please contact us.