Ctrip.com Jumps 11% #PreMarket On Priceline Investment
Shares of Ctrip.com (NASDAQ: CTRP) were up by more than 11 percent in Thursday's pre-market session on news that Priceline (NASDAQ: PCLN) is looking to invest $500 million in the company via a convertible bond offering, as the companies look to grow a global presence.
Priceline may also look to buy shares outright, eventually holding up to 10 percent of the shares outstanding in Ctrip.
Following the news, Deutsche Bank lifted its target price by nine percent to $80 and maintained a Buy rating, saying the deal is a potential win-win situation, with synergies benefiting hotel and outbound travel segment.
Shares of Ctrip were last trading at $66.25, up 9.5 percent.
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