Wotif.com Holdings Limited [ASX:WTF] is an online provider of accommodation, activity and flight booking services. They represent over 23,500 properties in 69 countries.
The share price closed 4.60% lower on Thursday.
The ACCC has halted the proposed take over from Expedia Inc. [NASDAQ: EXPE], citing some ‘issues’. These issues must be addressed before approval for the takeover is given.
The ACCC said the chief concern is ‘Market inquiries have indicated that Wotif is a major source of bookings for Australian accommodation providers and charges a lower commission rate than Expedia. Commission rates charged by Expedia and Booking.com in Australia are lower than the rates charged by those companies in other parts of the world. The presence of Wotif may be a contributing factor to this difference.’
The decision to approve the acquisition has been deferred until October 2.
Free Reports:
Expedia were willing to pay $3.30 per share. When the takeover was announced, the share price remained at this level. For many shareholders this was a positive outcome. The share price of Wotif has been trading down since 2009. The share price will regain some ground as long as the ACCC approve the take over from Expedia. If not, you can expect the stock to fall sharply.
Shae Smith+
Editor, Money Weekend
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