By Shares of Tripadvisor Inc. experienced a significant jump in after-hours trading on Monday as the travel-services platform announced the formation of a special committee. This committee is tasked with considering any proposals that may be brought forward for a potential transaction.
At the close of trading, Tripadvisor’s stock (TRIP, +3.04%) was up by a remarkable 10.9% during after-hours trading.
In an official statement, the company explained the purpose of the committee, stating, “The mandate of the Special Committee is to evaluate any proposals that may be brought forward for a potential transaction, and any alternatives thereto, with regard to Tripadvisor.”
This evaluation includes proposals that may arise as a result of Liberty TripAdvisor Holdings Inc.’s disclosure of its intent to assess potential alternatives involving both Liberty TripAdvisor Holdings (LTRP) and Tripadvisor.
Liberty TripAdvisor Holdings holds a controlling stake in Tripadvisor. The special committee is composed of independent directors and has enlisted Centerview Partners as its financial advisor.
While Tripadvisor emphasized that no transaction is guaranteed at this stage, the committee has yet to make any decisions regarding a potential transaction. Consequently, the company’s statement assured Tripadvisor shareholders that they need not take any action at this time.
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