Nice timing by Delta:
Delta cuts Priceline stake below 5 percent
NEW YORK, Feb 6 (Reuters) - Delta Air Lines Inc. <DAL.N> said on Wednesday it recently sold about $10.8 million of Priceline.com Inc. <PCLN.O> shares, lowering its position in the name-your-own-price Internet travel company to 4.95 percent from 5.68 percent.
In a filing with the Securities and Exchange Commission, Delta said it sold 850,000 shares on Jan. 31 at an average price of $6.12 apiece. That was followed on Feb. 1 by a sale of 878,571 shares at an average price of $6.43 each.
Delta now holds 11.8 million shares, the filing added. Now that the airline's stake is under 5 percent, it is no longer required to publicly disclose its transactions regarding its shares in regulatory filings.
Shares of Priceline, which sells airline tickets and provides hotel and rental car reservations online, are off about 54 percent from their Friday close and are hovering near lows not seen since mid-November. The shares were barely lower at $4.08 in late-afternoon Nasdaq trade.
"United Airlines is going to sell its stake in Cendant. (The move) is in line with all airlines trying to find liquidity," said CIBC analyst Paul Keung.
Already battered by the economic downturn, U.S. airlines are struggling with the lingering travel slump caused by the Sept. 11 attacks. Most major carriers reported large quarterly losses, but air traffic has recently improved, fueling hopes for an industry rebound in the second half of this year.
Priceline posted solid fourth-quarter results despite an ongoing travel slump, according to analysts, but has said its first-quarter results would meet or miss average expectations.
Executives at the Internet commerce firm have been cautious about the outlook, citing depressed airline fares, lower capacity and consumers' expectations for a "fire sale" on airline tickets. Some analysts have attributed part of the recent sell-off to the uncertain outlook for the industry, amid the travel slump tied to the Sept. 11 attacks and the economic slowdown.
Delta shares fell 61 cents to $31.23 in late-afternoon trading on the New York Stock Exchange.
17:09 02-06-02 |
