Shares of TripAdvisor Inc. (TRIP)s largest stockholder, spun off last week, are already getting cheaper by comparison with those of the online-travel agency. <\/p>\n
The CHART OF THE DAY compares the share price of Liberty TripAdvisor Holdings Inc. (LTRPA), formerly a part of billionaire John Malones Liberty Interactive Corp. (LINTA), with the per-share value of its TripAdvisor holding. <\/p>\n
Libertys gap widened to $6.31 a share yesterday from $5.74 on Aug. 28, its first day of post-spinoff trading, and $5.85 on Aug. 29, according to data compiled by Bloomberg. The figures reflect its ownership of 31 million TripAdvisor shares and its 73.7 million post-spinoff shares outstanding. <\/p>\n
The spread was $6.26 a share at the end of trading today. <\/p>\n
Susquehanna Financial came up with a narrower spread -- about $2 a share -- through a comparison that used Libertys enterprise value, or market value plus debt after subtracting cash. The company borrowed $400 million before the separation and retained $50 million after paying a special dividend to Liberty Interactive. <\/p>\n
Liberty TripAdvisor may ultimately exchange its stake for some of the companys assets, Joseph Stauff, a New York-based analyst at Susquehanna, wrote yesterday in a report. Any deal may come with a control premium of about 23 percent, he wrote. <\/p>\n
TripAdvisor, based in Newton, Massachusetts, has two classes of common stock. Liberty TripAdvisor owns an entire class that has 10 votes per share, which allows the Englewood, Colorado-based company to have 57 percent of the voting rights and only 22 percent of its equity. <\/p>\n
To contact the reporter on this story: David Wilson in New York at dwilson@bloomberg.net<\/a> <\/p>\n To contact the editors responsible for this story: Chris Nagi at chrisnagi@bloomberg.net<\/a> Michael P. Regan, Jeremy Herron <\/p>\n Press spacebar to pause and continue. Press esc to stop.<\/p>\n <\/p>\n Continue reading here:<\/p>\n Liberty TripAdvisor Cheapens as Trading Begins: Chart of the Day<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Shares of TripAdvisor Inc. (TRIP)s largest stockholder, spun off last week, are already getting cheaper by comparison with those of the online-travel agency. The CHART OF THE DAY compares the share price of Liberty TripAdvisor Holdings Inc. Continue reading