Planned Sabre Group Holdings IPO Worth A Look, Some Pros Say 08/08/1996 Dow Jones News Service
(Copyright (c) 1996, Dow Jones & Company, Inc.)
NEW YORK (Dow Jones)--Forget the current turbulence in the new issues market and prepare to take a long look at AMR Corp.'s (AMR) planned initial offering of Sabre Group Holdings Inc., some analysts are
advising.
The company provides airline reservations through its proprietary information system called Sabre (R). It provides the service to major airlines and nearly all the data processing, network and distributed systems services for American Airlines Inc. and other AMR subsidiaries.
David Menlow, president of the IPO Financial Network in Springfield, N.J., said a preliminary review of the planned offering suggested a solid deal that will be well-received by investors.
'The timing of the offer will be good - regardless of what's happening in the market now,' he said. 'The fourth quarter shows promise of better valuations and better long-term investment potential. This deal has all the earmarks of an institutionally sponsored offering.'
But Steven Samblis , chief financial strategist for Samblis in Longwood, Fla., said he would't recommend the deal to his clients.
Samblis said he has used the system for a portion of the 300,000 miles he's traveled this year and found it slow and cumbersome. Worse, it hasn't saved him money.
'I've had better luck calling a travel agent,' he said. 'In travel, the personal touch is still important.'
Scott Bittle, technology editor for Travel Weekly in Secaucus, N.J., said Sabre is the largest revervation system in the U.S.
'Sabre operates in a number of channels,' he said. 'What you see as a consumer on your personal computer at home isn't necessarily what's on the travel agent's desk. Sabre has been aggressive in working channels
besides travel agents.'
He said Sabre's service is available on the Internet in addition to online services like America Online Inc. (AMER) and Compuserve Corp. (CSRV).
Sabre's competitors include Apollo, World Span and System One Amadeus.
In a registration statement filed with the Securities and Exchange Commission, the company said it plans to offer Class A common stock valued at a maximum of $550 million. The company didn't disclose the
number of shares it plans to offer or the anticipated price range. IPOs are typically brought to market six to eight weeks after the registration statement is filed with the SEC.
The underwriters are Goldman Sachs & Co., J.P. Morgan, Merrill Lynch & Co. and Salomon Brothers Inc.
Sabre Group's proposed New York Stock Exchange symbol is TSG.
(END) DOW JONES NEWS 08-08-96 |
