Ezra Marbach

Ctrip: An Acquisition Target? (CTRP)

I received the following comment:

Pretty remarkable article, considering IACI looked at CTRP first, decided at $36/shr it was too pricey, and went to LONG and Tang instead....and we're talking over USD $1B now for CTRP....

I think the possibility of CTRP being bought out is one that needs to be considered, but I can't see EXPE being the buyer, given the fact they looked and passed before.

CTRP and LONG won't/can't merge without EXPE absorbing CTRP (or EXPE shedding LONG to another buyer and getting out of China completely).

Just went back to the prospectus, as I kinda sorta recalled some non-competition language about IACI (and sucessors) travel businesses.

As it stands, EXPE would need to sell LONG (which they can't do until next November) to buy CTRP (or for that matter, to support a CTRP/LONG merger).

Looking at EXPE's B/S, I just can't see that happening. Barry took the cash to IACI...

Prohibited from owning any other travel interests so long as they have a 15% economic interest in LONG.