800 Travel buyout rumors sparked
localbusiness.com
800 Travel buyout rumors sparked
Jan 05, 2001 02:06 PM ET
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By Bill Holland, LocalBusiness.com
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TAMPA, Fla., Jan. 5 (LocalBusiness.com) -- Investors in online travel seller 800 Travel Systems tied up bandwidth Friday trying to puzzle out the news that a company board member and major investor was prowling the market for more stock.
In a statement coordinated with 800 Travel's corporate headquarters here, the chief executive of privately-held, New York-based VTA Travel, Vince Vitti, said he thought 800 Travel was undervalued and he planned to buy "substantial quantities of stock within the next 90 days."
Further, Vitti hinted that he might buy enough shares to take over the embattled dot-com that is struggling to survive in a market dominated by priceline.com and Microsoft-backed Travelocity.com.
"While the intent of the purchase is for investment, a takeover may be initiated if significant stock becomes available through the public market," Vitti said in a statement issued by 800 Travel.
Vitti, also a majority shareholder in corporate travel agency VTS Travel Enterprises and its subsidiary, First Internet Travel, was appointed to 800 Travel's board this summer after announcing he held 5 percent of the company's outstanding stock.
According to SEC filings, Vitti has continued to add small amounts of shares throughout the fall, shares he's purchased as the price of 800 Travel shares slid down the charts.
Rumors of an impending buyout flew in June when it was announced that Vitti and VTS Travel, which bills $700 million per year for corporate travel arrangements compared with 800 Travel's $12.1 million annual revenues, had purchased a 5 percent stake.
800 Travel sells excess airline tickets and hotel rooms for VTS Travel.
"I don't think it's an unfriendly thing," a company spokesman told LocalBusiness.com early Friday afternoon. "He's been a great supporter of 800 Travel, I think he's just bargain hunting."
And bargain he seems to be finding. In November, according to SEC documents, Vitti snapped up roughly 50,000 IFLY shares (Nasdaq: IFLY) at prices close to $1. Since then share value has dropped further until hitting a low of 50 cents just before Christmas.
Friday saw heavier than normal trading of 800 Travel, which gained more than 18 percent, 19 cents, to sit at $1.19 by 2 p.m.
800 Travel has struggled against minor losses throughout the year, its first since changing from a call center travel agent to online service. For the first nine months of last year, it lost nearly $900,000 on slightly increased revenues of $10 million.
Bill Holland covers Tampa Bay for LocalBusiness.com. E-mail him with story ideas or comments. |
