Deals
Qunar Rises as Ctrip Plans to Buy `Significant Minority Stake'
- Shareholders of Qunar can exchange for cash or Ctrip stock
- ADRs still down this year as some airlines suspend sales
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Qunar Cayman Islands Ltd. rose as Ctrip.com International Ltd. said it will buy a “significant minority stake” in the company three months after they formed a partnership that gave them combined control of about 80 percent of China’s online hotel and air-ticket markets.
The move eased concern that Ctrip, the country’s biggest online travel service provider, would benefit more from the partnership at Qunar’s expense. Short interest in Qunar surged to the highest level on record in the days following the announcement of the deal in October, which brought together two firms whose managers have a history of animosity and gave Ctrip a voting interest in its long-time rival.