Facts
Sabre owned 70% of Travelocity’s shares and eventually bought the remainder not owned by Travelocity. A forced sale gives shareholders the right to receive a fair value for their shares.
Procedural History
Doft & Co. sued to obtain the fair value from the Court.
Issue(s)
What is the fair value of the shares?
Reasoning/Analysis
The Court came to the conclusion that no one is able to produce a reliable set of long-range projections for Travelocity. The Court decided to ignore both parties’ experts and used the comparable company approach, looking at Expedia as the comparable company. A 35% discount was applied to the valuation multiples derived from analysis of Expedia, giving a per share value of $32.76.
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