Why Shares of Sabre Are Falling Today
Shares of Sabre (NASDAQ: SABR) were down 18% on Monday after antitrust regulators in the United Kingdom blocked the company's planned acquisition of Farelogix. Sabre hoped to use the deal to diversify its revenue base, but those plans are at least now on hold.
Sabre, a former American Airlines Group subsidiary that runs airline ticketing and reservation systems, agreed to buy Farelogix for $360 million in an effort to better cater to discount airlines. Farelogix's technology helps airlines connect to travel agencies and consumers directly without relying on middlemen like Sabre.
But antitrust authorities in the U.S. and Europe took an unfavorable view of the deal, arguing that Farelogix's offerings were an alternative to Sabre, and not complementary. Sabre earlier this month won an initial court ruling against the U.S. Justice Department but ran into trouble in Europe.
Source Fool.com
