Travelport postpones its USD1.78 billion London IPO
Travelport postponed its USD1.78 billion London IPO on 10-Feb-2010, citing uncertain and unstable market conditions (Bloomberg, 11-Feb-2010). The IPO would have been the largest IPO in London in two years. The cancellation of the IPO follows a previous reduction in the price range, from GBP2.10-2.90 to GBP1.80-1.90. The sale, arranged by Barclays Capital, Credit Suisse, Citigroup, Deutsche Bank and UBS, was due to close on 11-Feb-2010, and would have seen Blackstone Group reduce its ownership stake from 70% to approximately 40%. Travelport had also altered its remuneration policy to reduce the amount Directors and staff would receive if operating profit growth reaches the company’s targets. The company said it would consider a share sale in the future when equity market conditions are “more favourable.”
Travelport: “Since we announced our intention to float, there has been significantly increased volatility and uncertainty in the global equity markets, as a result of macro circumstances unrelated to our business,” Jeff Clarke, CEO. Source: Bloomberg, 11-Feb-2010.