Travel.com.au urges shareholders to take no action
Tell-a-FriendONLINE travel agency Travel.com.au has dropped its support for Webjet’s original takeover offer as it considers both Webjet’s sweetened proposal and a rival bid from Wotif.com.
Both Webjet and Wotif.com have revised their bids for Travel.com since Webjet first put up its hand with a $42.3 million cash-and-scrip bid a month ago.
In an announcement to the stock market today, Travel.com.au’s board said it had withdrawn its September 6 recommendation of Webjet’s initial offer.
“The board unanimously considers the revised proposals from Webjet and Wotif to be superior to the original Webjet offer,” it said today.
Last week, Wotif.com made a counter-bid with a $49.8 million all-cash or all-scrip offer.
The race to consolidate in online travel intensified when Webjet hit back last Thursday with an improved offer of $54.4 million.
Within hours Wotif.com stepped back into the auction to pip Webjet with a $54.8 million all-cash or alternative all-scrip bid.
Wotif said its sweetened bid was superior to Webjet’s revised bid because it offers Travel.com.au’s shareholders a 57.1 per cent premium on the closing price of their shares on September 5, compared with Webjet’s revised bid which offers a 50.8 per cent premium.
As well, it allowed Travel.com.au shareholders to accept either all cash or all shares and would result in an entity combining a travel agency with with Australasia’s leading online accommodation operation, Wotif.com said last week.
In contrast, Webjet spruiked its revised offer last week as a compelling opportunity to create Australia’s biggest online travel agency.
Webjet said it had already done due diligence on Travel.com.au and confirmed - both last week and again today - it is retaining its 19.9 per cent in Travel.com.au.
Wotif’s offer is subject to the company acquiring 90 per cent of Travel.com.au’s shares.