LASTMINUTE.COM ..Bidding war or total scam ?

Associated Press
Update 1: Shares in Lastminute.com Up After Inquiry
05.11.2005, 11:28 AM

Stocks of European online travel retailer lastminute.com PLC surged by as much as 43 percent Wednesday after the company said it had received an inquiry about a possible takeover.

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.

Lastminute.com soars on bid approach
By Andrew Ellson, Times Online





Shares in online travel agency Lastminute.com rocketed by almost 50 per cent today after the dot.com pioneer said it had received a takeover approach.


But the travel website declined to name its suitor, nor say how much the bid was worth.

In a statement released to the London Stock Exchange, Lastminute said:

"The board of Lastminute.com notes today's share price movement and confirms that it has received an approach which may or may not result in an offer being made for the company.

"A further announcement will be made as and when appropriate," it added.

Potential bidders for the company could include American-based travel and property giant Cendant, which recently built up its portfolio of assets in Europe by acquiring ebookers in deal worth more than £200 million.

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

"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."


Other potential bidders could include rival Expedia’s parent company InterActiveCorp.

Cendant is the world’s largest car rental operator, with the Avis and Budget brands, and also runs the Galileo distribution system used by 44,000 travel agencies and more than 60,000 hotels.

Lastminute specialises in selling airline tickets, hotel rooms, entertainment tickets and holidays online and was floated at the height of the dot.com boom in March 2000 at an offer price of 380p a share.

The shares quickly soared as high as 555p, but then plunged to just 17p over the following two years as the technology sector bubble burst and customers cut back on travel in the following global economic downturn.

After recovering some ground over the last couple of years the company’s share price then fell heavily in February after it announced losses had increased to £1.8 million in the three months to December 31.


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I shorted LMC today, after the announcement, as I believe that this 'takeover' is an elaborate hoax as a means for LMC to get their own back on the shorters which the management blame for spreading false rumours earlier this year.

Revenge is a dish best served cold, and I think this is what we are witnessing here.

The next few days are going to be very interesting, so I thought I'd start a new thread which can be solely devoted to the unfolding dramas of the next few days.

All sensible thoughts, bull and bear, are welcome.

Please note that this is my opinion only. I don't know Brent Hoberman or anyone at LMC and have little basis for this theory other than gut feeling.