Expedia accepts 8.9% of its common stock in tender offer for $725 million

By Lisa Kerner

Charlotte, N.C., Aug. 15 - Expedia, Inc. accepted for purchase 25,000,003 shares, or some 8.9%, of its common stock at a purchase price of $29.00 per share, including odd lots at or below the $29.00-per-share price, for a total estimated cost of $725 million. The final proration factor for the offer is 84.2385%.

Expedia is borrowing $500 million under its existing credit facility and using cash on hand to fund the purchase and related expenses.

The Bellevue, Wash., online travel services company announced its final results on Wednesday. Its modified Dutch auction tender offer ended Aug. 8.

As previously reported, Expedia said on June 19 it planned to repurchase up to 116,666,665 shares, or roughly 42%, of its common stock at a price between $27.50 and $30.00 per share in a modified Dutch auction tender offer. Expedia's board had authorized the repurchase of up to an additional 20 million shares of common stock.

The information agent for the tender offer was MacKenzie Partners, Inc. (800 322-2885).

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