LASTMINUTE.COM has made a £54.9
million offer for fellow on-line agency Online Travel Corporation.
OTC’s directors are recommending the
offer to the firm’s shareholders.
Lastminute has valued OTC shares at
31p each, 6.5p more than the 23.5p they closed on AIM yesterday.
The deal means OTC shareholders
would replace their shares with the equivalent amount of Lastminute shares.
OTC owns and runs 20 travel sites
including onlinetravel.com, travelstore.com, allhotels.com, bargainholidays.com
and ifyouski.com.It also operates the travel site for 60 industry and consumer
companies including Thomas Cook, Lunn Poly and Virgin.
Lastminute chief
executive Brent Hoberman said the acquisition represented
a “major step” in the agency’s development.
“The
addition of OTC’s established corporate and white label operations to Lastminute.com’s
leading branded consumer businesses will create an even more powerful force in
the online travel and leisure sector,” he said.
The latest offer follows the acquisition by Lastminute of First Option
Hotel Reservations in January, accommodation-only site Medhotels in December
and car rental broker Holiday Autos in March 2003.