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CD ,,, Share in Lastminute.com Up After Approach
Wednesday May 11, 2:52 pm ET
By Jane Wardell, AP Business Writer
Shares in Online Travel Site Lastminute.com Surge Following Takeover Approach


LONDON (AP) -- Shares in European online travel retailer lastminute.com PLC surged 45 percent Wednesday after the company said it had received a takeover approach.
British-based lastminute.com told the London Stock Exchange it had "received an approach which may or may not result in an offer being made for the company" after rumors sent its shares higher. The company declined to name the prospective bidder.

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Analysts said confirmation of the interest is likely to flush out other potential bidders and the frenzied trading reflected the chances of a bidding war.

Shares closed 45 percent higher, just off highs reached during the session, at 153 pence ($2.87).

That gave the company a market valuation of just over 500 million pounds ($935 million), but still left the stock way off its peak of 560 pence during the 1999 dot-com boom.

Lastminute.com listed on the stock exchange five years ago, but the tech bubble burst soon after and it has struggled to maintain its profits and share price. Analysts have had the company marked as a takeover target for some time.

Analysts suggested that U.S.-based travel and property firm Cendant Corp., which recently built up its portfolio of assets in Europe by acquiring online travel firm ebookers, could be interested. They also cited rival companies such as Expedia and Travelocity as potential bidders.

"If you're a competitor there are obviously benefits from running the businesses off one platform," said Hilary Cook of Barclays Stockbrokers.

"There may also be interest from private equity companies as this is a cash-generative business that should be able to pay down debt quickly," she added.

Lastminute.com, which employs more than 2,000 people in 13 European countries where it offers travel services, in November reported a net loss of 76.9 million pounds for the year to Sept. 30, 2004, widening a loss 47.6 million pounds for the corresponding period of 2003. The company recently cut the number of its offices and slashed around 350 jobs to cut costs.