Hedge fund Elliott Associates, managed by billionaire Paul
Singer, has taken a nearly 12% stake in Travelport, and documents filed with
the Securities and Exchange Commission indicate major changes at the company --
including a sale -- could result.
Activist investor Singer and his entities are known for
shaking up companies around the world.
According to the SEC filing, Elliott Associates plans to
engage Travelport's management and board of directors "about numerous
operational and strategic opportunities to maximize shareholder value,"
and will encourage Travelport to "undertake a strategic review of, and
initiate a process to explore, or otherwise consider, the sale" of Travelport
or its businesses or assets.
The filing also said Elliott would "seek to participate
as a purchaser or investor."
In a statement, Travelport said it "has regular and
open dialogue with its shareholders and, in this context, considers
contributions made by all shareholders about the development of Travelport's
strategy."
In the SEC filing, Elliott calls Travelport "well
positioned in the GDS industry, especially in high growth travel markets,"
and says it "possesses a fast-growing and strategic business in the travel
payments industry."
Elliott also believes that Travelport's securities "are
undervalued and represent an attractive investment opportunity."
The SEC filing states that Elliot would consider a number of
potential changes in Travelport's management, operations, board composition and
other areas.
Travelport's stock was up over 14% on Monday afternoon.