Shares in online accommodation and air travel bookings company Wotif.com Holdings Limited (ASX: WTF) have climbed more than 6% to $3.29 in mid-afternoon trade.
The Australian Competition and Consumer Commission (ACCC) today announced it will not oppose the proposed acquisition by Expedia Inc of Wotif. The takeover remains subject to the final approval of shareholders at a scheme meeting to be held 9 October. If all approvals are received the transaction is expected to close in late October 2014.
Some accommodation and travel providers felt that Wotif’s removal from the Australian market would make the travel bookings market less competitive and allow rivals like Webjet Limited (ASX: WEB) to charge higher commission rates by virtue of their greater pricing power. However, the ACCC decided the online travel booking market was sufficiently competitive with many other operators like Flight Centre Travel Group Ltd (ASX: FLT) also playing a role.
Once rated a growth stock Wotif has disappointed in recent times and saw net profit drop 15% in the most recent financial year. With this in mind shareholders will most likely be happy to take the $3.06 per share being offered by Expedia alongside a special fully franked dividend of 24 cents per share. Shareholders who can capture the additional benefit of the full franking credit will effectively be receiving an additional 10 cents per share.
If you want to secure the kind of retirement that allows you to travel in style all around the world, then it may be worth reading all about The Motley Fool’s favourite growth stock for red hot returns! If you’re interested in reading up on it just enter your email “and we’ll send you the report completely FREE – pronto!”
5 stocks under $5
We hear it over and over from investors, "I wish I had bought Altium or Afterpay when they were first recommended by The Motley Fool. I'd be sitting on a gold mine!" And it's true.
And while Altium and Afterpay have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $5 a share!
*Extreme Opportunities returns as of June 5th 2020
Motley Fool contributor Tom Richardson owns shares in Webjet and Flight Centre. You can find him on Twitter @tommyr345
- On a serendipitous day, Tom Richardson is leaving the building – December 17, 2019 11:55am
- Why Aerometrex shares have doubled their IPO price – December 16, 2019 4:32pm
- Why the National Veterinary Care share price is going nuts today – December 16, 2019 3:39pm