Expedia (EXPE) has announced that it will buy in up to $3.5 billion of its shares. That will be about 42% of the company’s shares. The company is a spin-off of Barry Diller’s IAC/Interactive (IACI).
The company’s shares are up 17% to $29.63.
Perhaps the lesson to other companies that have not seen share price movement on disclosure of buy-backs should take a lesson. IBM (IBM) and Sun Micro (SUNW) are prime examples If you are going to make an offer, make it for most of your shares. Otherwise, don’t bother.
Douglas A. McIntyre
