PCLN NEWS.........BIG!!!!!!!!!!!!
Priceline.com, Hutchison Whampoa Forming Asia Internet Venture
Priceline.com, Hutchison Whampoa Forming Asia Internet Venture
Hong Kong, Jan. 26 (Bloomberg) -- Priceline.com, the Internet
site allowing consumers to bid for airline tickets and other
products, is forming an alliance with Hutchison Whampoa Ltd., Hong
Kong's largest conglomerate, for a similar service in Asia.
The new company will serve most of Asia's most populous
countries and is scheduled to begin operations later this year.
Priceline.com and Hutchison reached an agreement in principle to
fund and provide technology and management for the new company.
The alliance is the first international expansion by
Stamford, Connecticut-based Priceline.com, which has become a top
Internet commerce site since beginning operations in April 1998.
Hutchison's Internet businesses have been growing as well and
include a 40 percent stake in Tom.Com, a provider of China-related
content, and an interest in iBusinessCorporation.com, a company
announced Monday that will help companies trade goods and services
over the Internet.
``Hutchison's experience, size, influence and, most
importantly, knowledge of the region will allow Priceline.com to
quickly establish operations throughout Asia on which we can build
a lucrative business in the coming years,' said Richard Braddock,
Priceline.com chairman and chief executive in a statement.
Hutchison will own the new venture though Priceline.com will
purchase a note that can be converted for up to a 50 percent stake
in the company. Priceline.com declined to comment on how much it
will spend on the new alliance.
Priceline.com also will license its business model to the new
company and receive an annual fee.
The start of operations is pending negotiation of a final
agreement and approvals by the companies' boards. It will offer
products to consumers in China, Hong Kong, India, Taiwan,
Indonesia, Singapore, Thailand, Korea, Malaysia, the Philippines
and Vietnam.
Priceline.com said it hopes to announce a similar alliance
for Japan in the future. Priceline.com's shares rose 3 to 62 13/16
yesterday.
Hutchison Whampoa was unchanged at HK$104 yesterday.
NYSE/AMEX delayed 20 min. NASDAQ delayed 15 min.
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