Expedia announced last week their intention to buy Orbitz, in an attempt to grow their own airfare sales. If any antitrust or other legal complications block Expedia acquisition of Orbitz, Expedia would have to pay Orbitz a $115 million termination fee, they announced on Friday.
That detail emerged as Expedia Inc. filed a copy of the merger agreement with the Securities and Exchange Commission.
On the other hand, if Orbitz Worldwide were to accept a proposal superior to Expedia Inc.’s $12 per share then Orbitz would have to pay Expedia a $57.5 million termination fee. Orbitz Worldwide is prohibited from soliciting such an offer, but is free to accept one.
Breakup-fees are fairly standard in merger agreements but the antitrust fees written into the Expedia-Orbitz agreement are noteworthy because this acquisition may get closer scrutiny than others.
Full Content: Skift
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
Uruguayan Antitrust Scrutiny Puts Major Meatpacking Deal Between Marfrig and Minerva on Hold
May 19, 2024 by
CPI
Alaska Airlines Seeks Dismissal of Consumer Lawsuit Over $1.9 Billion Hawaiian Airlines Buy
May 19, 2024 by
CPI
Idaho Attorney General Orders Split of Kootenai Health and Syringa Hospital
May 19, 2024 by
CPI
Court Rejects T-Mobile’s Appeal Bid in Antitrust Case Over Sprint Merger
May 19, 2024 by
CPI
Google Requests Judge, Not Jury, to Decide on Antitrust Case
May 19, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Ecosystems
May 9, 2024 by
CPI
Mapping Antitrust onto Digital Ecosystems
May 9, 2024 by
CPI
Ecosystems and Competition Law: A Law and Political Economy Approach
May 9, 2024 by
CPI
Ecosystem Theories of Harm: What is Beyond the Buzzword?
May 9, 2024 by
CPI
Open Ecosystems: Benefits, Challenges, and Implications for Antitrust
May 9, 2024 by
CPI