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Net travel site Orbitz files for IPO

Orbitz, a controversial online travel site founded by the nation's largest airlines, filed paperwork Monday for an initial public offering to raise $125 million from the sale of stock. The Chicago-based company did not say how many shares would be offered or at what price they would be offered. The money-losing company hopes to trade under the ticker symbol "ORBZ." Orbitz said it would use the money raised in the IPO to acquire other businesses or develop new products and technologies, though it stated that it had no immediate plans for acquisitions. Goldman Sachs, Credit Suisse First Boston, Legg Mason Wood Walker, and Thomas Weisel Partners will underwrite the IPO. The filing comes as the inspector general of the Transportation Department reviews Orbitz's business practices--the second time the company has come under government scrutiny since its founding in 2000. The U.S. Department of Transportation, Inspector General Ken Meade and the Senate Commerce Committee determined last year that Orbitz did not violate antitrust regulations at the time, allowing the company to proceed with business plans. The inspector opened a second review April 1, and has 90 days to issue his own findings on whether Orbitz is exploiting any unfair advantages. --Rachel Konrad, Special to ZDNet News
Written by Rachel Konrad, Contributor
Orbitz, a controversial online travel site founded by the nation's largest airlines, filed paperwork Monday for an initial public offering to raise $125 million from the sale of stock.

The Chicago-based company did not say how many shares would be offered or at what price they would be offered. The money-losing company hopes to trade under the ticker symbol "ORBZ."

Orbitz said it would use the money raised in the IPO to acquire other businesses or develop new products and technologies, though it stated that it had no immediate plans for acquisitions. Goldman Sachs, Credit Suisse First Boston, Legg Mason Wood Walker, and Thomas Weisel Partners will underwrite the IPO.

The filing comes as the inspector general of the Transportation Department reviews Orbitz's business practices--the second time the company has come under government scrutiny since its founding in 2000. The U.S. Department of Transportation, Inspector General Ken Meade and the Senate Commerce Committee determined last year that Orbitz did not violate antitrust regulations at the time, allowing the company to proceed with business plans.

The inspector opened a second review April 1, and has 90 days to issue his own findings on whether Orbitz is exploiting any unfair advantages. --Rachel Konrad, Special to ZDNet News

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