Shareholder buying more 800 Travel - Tampa Tribune
TED JACKOVICS of The Tampa Tribune
The leading shareholder in Tampa- based 800 Travel Systems Inc. intends to purchase ``substantial quantities'' of the company's stock in the next 90 days and may initiate a takeover, the company said Friday.
Vincent Vitti, a board member of 800 Travel, said its stock is undervalued compared with similar companies, which offers discount travel services. Vitti said his intention is for investment, but he may initiate a takeover if significant stock becomes available through the public market.
He could not be reached for comment Friday.
Vitti also is majority shareholder of VTS Travel Enterprises of Mahwah N.J., one of the 10 largest corporate travel management companies in the United States.
``Right now Vitti's investment would be a personal investment,'' said Michael Gaggi, founder and executive vice president of business development for 800 Travel.
``If he accumulates enough stock, a takeover is not out of the question but I would not want to speculate further.''
Vitti owned 606,642 shares, or about 7.5 percent, of 800 Travel Systems stock in November, according to a filing with the Securities and Exchange Commission. He purchased 130,106 shares in August at prices ranging from $1.88 to $2.25. He bought 53,966 shares in November at prices ranging from $1 to $11.09.
The company's stock closed Friday at $1.13, up 13 cents.
800 Travel lost $453,570 on $3.5 million in revenue for the quarter ended Sept. 30.
800 Travel Systems sells discounted tickets for air and cruise lines, making its money on commissions, service fees from its customers and incentives from the SABRE reservation service.
It sells its products over an 800 telephone number and on the Internet at www.lowairfare.comand www.cruisebrokers.comand www.prestigetravelclub.comwww.ptstravel.com800 Travel employs about 225 people in Tampa and 125 in San Diego.
The company completes an average of 18.4 sales per 100 contacts on its Web sites because it incorporates an agent who can answer questions immediately, Gaggi said. The industry norm is 1.5 purchases per 100 Internet visits, he said.
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