Does Sabre Buyout Put PCLN and EXPE in Play?

With the private equity buyout of Travelocity parent Sabre Holdings Corp. (NYSE: TSG), takeover speculation on Priceline.com Inc. (Nasdaq: PCLN) and Expedia Inc. (Nasdaq: EXPE) is picking up.

The stocks are doing little today but you can expect more chatter on the names going forward as sector consolidation takes shape.

Today's Sabre deals follows news this summer that a Blackstone Group affiliate bought Cendant's Travelport, which operates Orbitz.com, for $4.3 billion.

Sabre Holdings (TSG) Bought By Private Equity Group

As was rumored, Sabre Holdings (NYSE: TSG) agreed to be acquired by Silver Lake Partners and Texas Pacific Group for $32.75 per share in cash. Link

Reports Sabre Holdings (TSG) Is Up for Sale

According to reports from the Wall Street Journal, Sabre Holdings Corp. (NYSE: TSG) has put itself up for sale, with private-equity groups seen as the most likely purchasers. Sabre Holdings could be acquired at a premium to its $3.75 billion market cap.

Soleil Securities Comments on GDS Industry Consolidation

Soleil Securities analyst Michael Millman, of Millman Research Associates, comments on Sabre Holdings (NYSE: TSG) and industry consolidation.

The analyst said they see the likelihood of GDS (global distribution system) consolidation increasing and expects Travelport to be a consolidator because of its scale and reach.

The firm said the two remaining GDS' will have to merge. The firm said the the pairings will be Galileo (owed by Travelport)/Worldspan (under a great deal of pressure), which will force Amadeus/Sabre.