What Happened to the Wotif.com Holdings Ltd Share Price?
Shares in online travel service provider Wotif.com Holdings Ltd [ASX:WTF] bucked the broader market trend to power ahead by nearly 6.5% today. The price action marks a dramatic resurgence from a weak September for Wotif.com.
Why Did This Happen to WTF Shares?
This morning Australia’s antitrust watchdog announced that it would not oppose travel booking giant Expedia Inc [NASDAQ:EXPE] in its bid to take control of Wotif.com.
This clears the biggest hurdle that the deal had faced. It paves the way for closure before Christmas.
Expedia’s $703 million takeover bid values Wotif.com at $3.30 per share…so today’s price action suggests that the market sees a very limited chance that the deal will fall over.
What Now for Wotif.com Holdings Ltd?
The New Zealand Commerce Commission still has to give its seal of approval before this deal can finalise…but this seems to be a mere formality.
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Wotif faces a challenging business environment and joining forces with Expedia will undoubtedly solidify its position.
Shareholders may well have been disappointed by Wotif.com’s share price performance over the past four years…but this offer has provided a golden opportunity to sell up and consider investing the proceeds in other Aussie internet stocks.
Cheers, Tim Dohrmann+
Small-Cap Analyst, Australian Small-Cap Investigator
Join Money Morning on Google+
The post Why Wotif.com Holdings Ltd Shares Soared Today appeared first on Stock Market News, Finance and Investments | Money Morning Australia.
