Lastminute soars on bid approach

Lastminute is seen by many analysts as a takeover target

Shares in Lastminute.com have surged on news the online retailer has received a takeover approach.

Lastminute's board confirmed it had received an approach "which may or may not result in an offer being made".

Shares in UK-based Lastminute rose by almost 48% to close at 153p even though it did not reveal its potential suitor. The Financial Times said that the firm was US travel and technology group Sabre Holdings, the owner of internet company Travelocity.

Sabre Holdings was not available for immediate comment.

The takeover offer values Lastminute at more than £500m ($936m; 731m euors), the Financial Times said, citing unidentified people close to the companies.

Sector consolidation

Lastminute specialises in selling holidays and flights to website customers at short notice.

Analysts have previously suggested that US internet group IAC/InterActiveCorp - which owns travel website Expedia - may be a possible suitor for the company.

Last year, Lastminute rival Ebookers was bought by US travel and real estate firm Cendant.

"There is a lot of consolidation in the sector. To make money in the online travel business, you need scale," said analyst Robin Chhabra of brokers Evolution Securities.

Tourism downturn

A darling of the boom in technology stocks in the late 1990s, Lastminute was hit hard when the dot.com bubble burst in 2000.

More recently, the company has been struggling against a global downturn in the tourism market.

Lastminute announced plans last year to cut 350 jobs, or 14% of its workforce, as part of a cost-cutting drive.

The company was founded by Martha Lane Fox and Brent Hoberman seven years ago. Ms Lane Fox quit in 2003.