TripAdvisor committee shows takeover offer credible, says BTIG

BTIG analyst Jake Fuller says there is some confusion around the news from TripAdvisor (TRIP) last night. Based on its reading, the firm believes Liberty TripAdvisor (LTRPA) received an offer to acquire all of the outstanding shares of Liberty TripAdvisor and TripAdvisor, the proposal contemplates acquiring both concurrently for cash, and both would cease to trade publicly if the transaction were completed. Liberty TripAdvisor and TripAdvisor likely wouldn’t have gotten board approval to engage, formed a special committee and retained an advisor if an offer weren’t credible, the analyst tells investors in a research note. “Without knowledge of who might be on the other side though, we can’t consider the valuation impact of any potential cost/revenue synergies,” BTIG adds. It has a Buy rating on TripAdvisor with a $30 price target.