Kayak and Priceline deal under review in UK
Kayak Software Corp. and priceline.com Inc. said Wednesday that UK regulators are reviewing a pending deal between the two online travel companies.
Priceline.com announced in November that it would buy competitor Kayak for $1.8 billion in a cash and stock deal that would expand its online business.
Kayak, which went public in July, allows users to compare hundreds of travel sites when looking for flights, hotels and rental cars. It sends the consumer to other websites to complete their purchases and earns fees on those referrals. Some bookings can be made directly on Kayak's website and mobile applications. It also sells advertising.
The companies said Wednesday that the UK Office of Fair Trading has set an administrative deadline for May to conclude its review of the deal. The closing of the merger will take place once all the necessary regulatory approvals, approval of Kayak's shareholders and other closing conditions have been satisfied.
Shares of Kayak rose 3 cents to $40.75 in midday trading, in line with broader market trends. Shares of priceline.com fell $3.80 to $718.24.