Orbitz Worldwide Annouces Large Stakeholder Will Sell Shares In Public Offering
In a press release Wednesday, Orbitz Worldwide (NYSE: OWW) announced its largest stakeholder will sell 20 million shares of the company.
Orbitz released a separate press release stating mostly strong guidance but investors are weighing more on the news of stakeholders sale of shares.
Orbitz announced within its press release, Travelport Limited, which owns nearly 37 percent of Orbitz, will sell 20 million shares of Orbitz stock in a public offering. The underwriter dealing with Travelport Limited was given a 30-day option to purchase up to an additional three million shares from the selling stockholder. Orbitz announced it will not receive any proceeds from the offering.
On a positive note, Orbitz announced in the press release in its first release short term guidance stating the company should report above consensus expectations in its upcoming Q2 2014 results.
Orbitz released guidance its Q2 2014 of Stayed room night expected growth of 20 percent year-over-year by the second quarter, net revenue of approximately $248 million, and adjusted EBITDA to be approximately $45 million. Orbitz will announce its second quarter 2014 earnings results on August 7, 2014.
Orbitz shares down more than four and a half percent after hours.
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