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HomeAway Surges After Expedia Deal on Counterbid Speculation

  • Expedia offered $3.9 billion for vacation-rental company
  • Priceline Group is Expedia's biggest rival in online travel
Bloomberg business news

CEO's on Expedia Buying HomeAway for $3.9 Billion

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HomeAway Inc. shares soared 25 percent after Expedia Inc. agreed to acquire the vacation-rental company for $3.9 billion, and investors speculated the bid may prompt a counteroffer from another rival such as Priceline Group Inc.

Expedia will pay $38.31 a share for HomeAway, the companies said in a statement after the close of trading on Wednesday. That’s 20 percent higher than Austin, Texas-based HomeAway’s price before the deal was announced. The stock rose to $40.15 on Thursday in New York, and Expedia shares jumped 2.3 percent to $137.31.