Travelport’s Proposed Buyout Deal May Not End the Drama
Photo Credit: Travelport CEO and President Gordon Wilson, shown here in fall 2014. A $4.4 billion buyout deal for travel technology giant Travelport has met with skepticism among investors. But private equity makes a case for change. Travelport
Skift Take
The early consensus is that Elliott Management put together a disappointing deal for investors. We cover the case for and against the deal here. But expect larger Travelport investors to consider resisting the deal or hope that a white knight acquirer rides in with a better offer.
Affiliates of Elliott Management and Siris Capital Group plan to take Travelport private in the second quarter of 2019 in an all-cash deal with an enterprise value of $4.4 billion. But a lot of questions remain, even after financial documents in connection with the merger were filed late Monday.
Initial investor and analyst reactions were muted. Morningstar's Dan Wasiolek, a senior equity analyst, described the proposed deal as "unattractive" and "disappointing" for shareholders. Other observers we spoke with echoed that reaction.
The deal isn't a sure thing. Support from Travelport's largest shareholders is critical to getting the deal approved. Elliott Management is merely the fourth-largest, with a 5 percent voting rights ownership.
BlackRock holds the largest slice, at 13 percent, Principal Global owns 7 percent, Credit Suisse has 6 percent, and NewSouth Capital Management has 4 percent. Whether these investors like the offer depends on a couple of factors, said a research
