Ctrip.com Hits 52-Week High On Priceline News
The Chinese online travel company Ctrip.com International Ltd. (NASDAQ: CTRP) hit a 52-week high Tuesday after Priceline Group Inc. (NASDAQ: PCLN) said it will boost its stake in the company to 10.5 percent.
The Norwalk, Connecticut-based Priceline said the increased investment of $250 million will be made through a convertible bond.
Priceline also obtained permission Tuesday from Ctrip to increase its stake up to 15 percent by acquiring Ctrip's American depositary shares in the open market.
Ctrip hit its year high of $87.62 early Tuesday, but traded recently at $81.26, off nearly 4 percent. The shares are up 73 percent in the past three months.
Priceline was off nearly a point recently at $1,197.44.
The two companies established a commercial relationship in 2012, which was expanded in August 2014 along with the $500 million investment by Priceline.
The two companies will continue their existing commercial partnership, whereby accommodations inventory is cross-promoted between the brands.
Priceline Chief Executive Darren Huston said Ctrip is a market leader in China.
"We're investing in a company that we believe fits well with our long-term view of China as a market and the Chinese people as global travelers," Huston said.
Separately, Ctrip last week acquired a 37.6 percent stake in China-based mobile and online hotel reservations provider eLong Inc. (NASDAQ: LONG) for $400 million, buying the shares from Expedia Inc. (NASDAQ: EXPE).
Expedia sold its entire 62.4 percent stake in eLong for $671 million. Other eLong investors joining Ctrip last week included Keystone Lodging Holdings Ltd., Plateno Group Ltd. and Luxuriant Holdings Ltd.
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