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US: Travel site Prepares for antitrust fight

By  |  February 25, 2015

Expedia is making a big gamble on its ability to obtain antitrust clearance for its buyout of Orbitz Worldwide, which will leave just two major online travel players. At the same time, it has put itself in the strongest negotiating position possible with regulators by indicating that is willing to litigate with any agency that stands in its way.

Expedia has agreed to pay Orbitz a so-called reverse termination fee of $115 million if the deal is killed by antitrust regulators.The merger agreement does not require Expedia to sell assets or take other actions if they would have a material adverse effect on Orbitz.

Expedia has further limited its risk by giving itself enough time to challenge any unfavorable administrative action in court, where it is apparently confident it can prevail. A court battle with the Federal Trade Commission or the Department of Justice can take a year or more.

 

Full Content: The Wall Street Journal

 

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