The Inside Story of an Activist Investor’s Fight for Travelport
Photo Credit: A photo of Travelport's executive team at the company's headquarters in Langley, UK. In the center is Travelport CEO Gordon Wilson. Travelport
Skift Take
Few companies other than activist investor Elliott Management expressed a serious interest in acquiring Travelport. Elliott twice lost potential private equity partners after they reviewed Travelport's books. The deal price is underwhelming, and that's a signal that some things haven't been going the company's way.
Elliott Management won. Wednesday was the last day for travel technology giant Travelport to shop for rival bids to Elliott's $4.4 billion buyout offer. The companies have not publicized a better offer.
Elliott, a $34 billion hedge fund led by boardroom scourge Paul Singer, will use a private equity arm, Evergreen, for the transaction. It will also partner with private equity firm Siris in a quest to take Langley, UK-based Travelport, the travel tech and travel agent distribution company, private.
However, the road to the deal was pot-holed. Elliott wanted a partner to split the risks. It found one, but when that unnamed partner saw Travelport's books, it balked and ran, according to a Travelport Securities and Exchange Commission filing about the run-up to the deal. The same thing happened again over the summer with a different unnamed partner.
It wasn't until the fall that Elliott found Siris. Four other financial entities kept their interest limited to making phone calls.
